Comments on: Canadian Banks Are Still Prepared For Record Credit Losses, Despite Low Delinquencies https://betterdwelling.com/canadian-banks-are-still-prepared-for-record-credit-losses-despite-low-delinquencies/ Canada’s Fastest Growing Real Estate News Source Tue, 24 Aug 2021 17:21:05 +0000 hourly 1 By: Jamie https://betterdwelling.com/canadian-banks-are-still-prepared-for-record-credit-losses-despite-low-delinquencies/#comment-74454 Tue, 24 Aug 2021 17:21:05 +0000 https://betterdwelling.com/?p=17882#comment-74454 In reply to PK.

Which is not the same as banks needing to put away more money, but I get it’s not easy to understand distribution.

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By: RWZM https://betterdwelling.com/canadian-banks-are-still-prepared-for-record-credit-losses-despite-low-delinquencies/#comment-74445 Tue, 24 Aug 2021 03:23:54 +0000 https://betterdwelling.com/?p=17882#comment-74445 In reply to Strategic.

“If the total outstanding balance of credit products increased provision against them will increase also.”

Perhaps I’m not understanding you correctly, but the chart is expressed as a percent.

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By: Strategic https://betterdwelling.com/canadian-banks-are-still-prepared-for-record-credit-losses-despite-low-delinquencies/#comment-74444 Tue, 24 Aug 2021 01:14:44 +0000 https://betterdwelling.com/?p=17882#comment-74444 Well, provisioning are against credit products. If the total outstanding balance of credit products increased provision against them will increase also.

Dont be so alarmist

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By: Bob Walter https://betterdwelling.com/canadian-banks-are-still-prepared-for-record-credit-losses-despite-low-delinquencies/#comment-74441 Mon, 23 Aug 2021 20:11:48 +0000 https://betterdwelling.com/?p=17882#comment-74441 In reply to RainCityRyan.

Are we also going to inflate the salaries and wages then, because those have been rather stagnant for the past decades.

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By: RainCityRyan https://betterdwelling.com/canadian-banks-are-still-prepared-for-record-credit-losses-despite-low-delinquencies/#comment-74440 Mon, 23 Aug 2021 19:47:32 +0000 https://betterdwelling.com/?p=17882#comment-74440 In reply to Andrew.

Correct.
Inflating away debt … basically boils down to printing enough money to paper over the hole. Issue is that one persons debt is another persons asset (ie savers lend money to debtors) so at a certain point people will stop wanting your paper money (unless it’s to actually fill a pothole).
The savers will require you pay back the debts in another currency, and that’s when things REALLY get fun.

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By: Patient Investor https://betterdwelling.com/canadian-banks-are-still-prepared-for-record-credit-losses-despite-low-delinquencies/#comment-74438 Mon, 23 Aug 2021 19:10:18 +0000 https://betterdwelling.com/?p=17882#comment-74438 Its going to be a bumpy ride from now on with almost any type of investments: stocks, bonds, real estate and so on.
Alibaba, gold, crypto and so on. A lot of banks are canceling credit lines.

Some investors are looking at real estate as a safe heaven.Real estate has long been a way to hedge against inflation. In order for the strategy to work, generally the inflationary environment has to be long-lasting. It will be interesting to see whether that environment is short-lived as many analysts predict, or proves to be more protracted.

Its hard to predict.

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By: Scott https://betterdwelling.com/canadian-banks-are-still-prepared-for-record-credit-losses-despite-low-delinquencies/#comment-74436 Mon, 23 Aug 2021 18:56:16 +0000 https://betterdwelling.com/?p=17882#comment-74436 At least we know why he called an election now….

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By: PK https://betterdwelling.com/canadian-banks-are-still-prepared-for-record-credit-losses-despite-low-delinquencies/#comment-74435 Mon, 23 Aug 2021 18:27:54 +0000 https://betterdwelling.com/?p=17882#comment-74435 The pandemic has Canadians paying down non-mortgage debt at fastest pace since 1980s.
https://www.cbc.ca/news/business/statscan-debt-1.6149983

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By: Trader Jim https://betterdwelling.com/canadian-banks-are-still-prepared-for-record-credit-losses-despite-low-delinquencies/#comment-74431 Mon, 23 Aug 2021 16:27:23 +0000 https://betterdwelling.com/?p=17882#comment-74431 In reply to Andrew.

I believe that’s what is known as sarcasm. Inflation above a certain point becomes toxic. There’s a reason we were so laser-focused on 2% inflation and all of a sudden we’re now hyper-focused on increasing it.

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By: Frank Daugherty https://betterdwelling.com/canadian-banks-are-still-prepared-for-record-credit-losses-despite-low-delinquencies/#comment-74430 Mon, 23 Aug 2021 16:21:15 +0000 https://betterdwelling.com/?p=17882#comment-74430 Any chance we can get these numbers for mortgage debt in Canada? Thanks and love the blog.

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