It is not a pretty picture, but facts must be faced and risks managed. Sticking heads in the sand will not help. Years of low rates have fueled reckless lending and borrowing and set Canada up for a doozie of a mean reversion cycle. The exodus and closure of Canadian retailers (today Canada’s largest and most over-built sector) is only started. This warns of more layoffs and empty commercial space. It also underlines the financial fragility in Canadian families as well as the debt/risk-selling Canadian finance sector (see: A plague of financials), and the taxpayer-backed Canadian Mortgage and Housing Corporation.
Times are a changing as debt revulsion spreads. The adjustment periods are painful, but speaking publicly and admitting the debt mistakes people have made are critical parts of the healing process. If we must make financial mistakes, earlier is better than later of course, when people have less time to recover. Everyone can make better choices by learning from the stories of others. Time for honest discussions.
Bankrupt at 19: How one man climbed out of debt and started a new life. Here is a direct video link.