Many Canadians Close To Insolvency?

An article published today on BNN Bloomberg states many Canadians are less than only $200 from insolvency. This has increased from 46% to 48%. Why 46% wouldn’t have been highly concerning is not certain to me, but 48% is extremely worrying. This probably is part of of the reasoning behind Steve Eisman, hedge fund manager […]

An article published today on BNN Bloomberg states many Canadians are less than only $200 from insolvency. This has increased from 46% to 48%. Why 46% wouldn’t have been highly concerning is not certain to me, but 48% is extremely worrying. This probably is part of of the reasoning behind Steve Eisman, hedge fund manager made famous in the move The Big Short, recent move to Short the 3 of the Big Canadian Banks.

“I’m calling for a simple normalization of credit that hasn’t happened in 20 years,”

Eisman said in an interview with the Financial Times

What returning to normal means in one of the biggest credit bubbles in the history of Earth let alone Canada means is anyone’s guess.

Bibliography:

BNN Bloomberg. (2019, April 22). ‘Maxed out’: 48% of Canadians on brink of insolvency, survey says – BNN Bloomberg. Retrieved from https://www.bnnbloomberg.ca/maxed-out-48-of-canadians-within-200-of-insolvency-survey-says-1.1247336

Burroughs, C. (2019, March 22). A star investor in ‘The Big Short’ is betting against Canadian banks. Retrieved from https://www.businessinsider.com.au/the-star-investor-in-the-big-short-is-betting-against-canadian-banks-2019-3?r=US&IR=T

(n.d.). Retrieved from https://www.bloomberg.com/news/articles/2019-04-09/eisman-sees-20-plus-drop-in-canada-bank-stocks-on-short-call

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