“Even more importantly, the number of proposals for personal bankruptcies – a possible signal of increased bankruptcies down the road – is now rising by 14.9 per cent on a year-over-year basis – the fastest pace since the 2001 recession,” [CIBC Senior Economist Benjamin Tal] added.That's OK say the bulls. After all it's those Easterners in the manufacturing sector that are suffering, everyone knows that the West is still hot. Except that when Canada's manufacturing sector slows down, so does the need for resource extraction. China's bubble is popping, nickel and copper prices are declining; natural gas has been down for 18 months now. Ignore the warning signs at your own peril. The economy is global. It's slowing down globally.
Incomes don't support current debt levels. Hence why the rate of bankruptcies is expected to climb by 15% this year. Banks will get tighter with that debt which means people will get less money and more personal bankruptcies will happen as this generation remembers the lessons they didn't learn in the last credit rate induced crash of 1981. History has a way of repeating itself, non?