Can you tie the interest rates to DEBT? It seems the more debt owed, the higher a countries RISK. Adjusting interest rates harshly over a short time, while increasing Canada’s debt is exactly how we add more inflation to what likely was minor inflation. Nice job Feds 🤫
Apparently Canada's debt to income ratio isn't that bad. So the risk of Canada defaulting is very low and therefore lower risk. Yes the debt has risen a lot, but so has Canada's income and ability to pay of it's debt. I personally think there was a lot of wasteful and reckless spending, but that's nothing to do with the BoC. And no, adding more expense to debt (rising interest rates) is not inflationary. Obviously it would hit interest rate sensitive sectors harder, but over all price stability is more important. People shouldn't be expecting debt to be nearly free as it was pre pandemic (post GFC)
Id agree in a way. This is sort of like a chicken egg sort of thing. Obviously having a central bank increase the price of debt effects interest rates. But central banks watch the economy and price stability to decided to raise or lower the price of debt. Also long term interest and short term interest are influenced differently.
If they put them up again you can kiss goodbye to all your bank stock dividends and half of your portfolio value. No wonder everyone is starting to buy crypto.
What portfolio? What companies can Canadians even invest in that aren't American, we don't produce anything. Outside of like Suncore, CNRL, CN, CP, Telus, Bell, the big 5 banks, Enbridge, and TC, what is there even to invest in? This is why everyone just buys housing as we have a very similar economy to China at this point.
Can you tie the interest rates to DEBT? It seems the more debt owed, the higher a countries RISK.
Adjusting interest rates harshly over a short time, while increasing Canada’s debt is exactly how we add more inflation to what likely was minor inflation. Nice job Feds 🤫
Apparently Canada's debt to income ratio isn't that bad. So the risk of Canada defaulting is very low and therefore lower risk. Yes the debt has risen a lot, but so has Canada's income and ability to pay of it's debt. I personally think there was a lot of wasteful and reckless spending, but that's nothing to do with the BoC. And no, adding more expense to debt (rising interest rates) is not inflationary. Obviously it would hit interest rate sensitive sectors harder, but over all price stability is more important. People shouldn't be expecting debt to be nearly free as it was pre pandemic (post GFC)
the truth is that the economy controls interest rates.
Id agree in a way. This is sort of like a chicken egg sort of thing. Obviously having a central bank increase the price of debt effects interest rates. But central banks watch the economy and price stability to decided to raise or lower the price of debt. Also long term interest and short term interest are influenced differently.
@@matthewsemenuk7544 central banks don't control interest rates; although, they try to make it look like they do.
If they put them up again you can kiss goodbye to all your bank stock dividends and half of your portfolio value. No wonder everyone is starting to buy crypto.
What portfolio? What companies can Canadians even invest in that aren't American, we don't produce anything. Outside of like Suncore, CNRL, CN, CP, Telus, Bell, the big 5 banks, Enbridge, and TC, what is there even to invest in? This is why everyone just buys housing as we have a very similar economy to China at this point.