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Should Canadians be worried about the financial stability of our banks?

Funding costs rose dramatically during the financial crisis when liquidity dried up, pushing up the costs of consumer and business loans Finance Minister Jim Flaherty tightened the rules on mortgages for a fourth time in four years, saying the government would no longer insure mortgages that are amortized over a period longer than 25 years "Neighbourhoods with more bank branches and payday lenders per capita (i.e. more competition) have looser lending standards (higher leveraged households) and experience greater bankruptcies"

Household debt contributes to recessions and depressions, one major cause is banks lowering their lending requirements to make more money. Household debt can be reduced through income and savings, debt negotiations and inflation.

February crude was up 96 cents at US$94.24 a barrel and the energy sector was down 0.35%. Canadian Natural Resources (TSX:CNQ) gave back 35 cents to C$28.74. The gold sector was off about 0.4% while February bullion declined 70 cents to US$1,683.20 an ounce. Barrick Gold Corp. (TSX:ABX) faded 34 cents to C$33.69.

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1. Why do think consumer debt increased so much? 2. They say that getting consumers to spend more will help boost the economy, but is it beneficial when consumers are going into debt?

1. i believe consumer debt has increased drastically because the generation is upgrading really quickly with new things, mainly technology and many people want to be caught up with the latest trends whether it is buying the latest iphone, clothing, real estate, buying a car etc. People begin to borrow heavy loans without thinking of a way to pay back therefore causing a big debt to themselves.

1. I believe consumer debt has increased greatly due to the need to purchase luxuries and unnecessary goods because we live in a society where we live in a society where you feel incomplete if you do not possess a certain good. 2. I think spending money to a certain point is beneficial because it helps circulate cash, however consumers should not be spending to a point where they cannot pay back debts. Also people can spend money wisely rather on unnecessary and expensive goods.

1. What affect do you think the american stockpiles of crude oil have on the supply and demand graph of crude oil? 2. Since the middle east contributes to most of our oil resources, what are the possible solutions to the price increase of crude oil if the conflict between israel and palestine continues?

"A new status quo of slow or stagnant economic growth for Ontario's economy is developing," warns the Task Force on Competitiveness, Productivity and Economic Progress. "If economic growth languishes at less than 2 per cent annually, everything from government funding and programs to private sector competitiveness and employment will be impacted." The issue of dead money surfaced this summer when Bank of Canada Governor Mark Carney said Canadian companies are sitting on cash when they should be investing or returning it to shareholders - comments that sparked an avalanche of criticism from economists and executives. Canada's relative stability should make businesses more willing to invest. Instead, they are sitting on large cash reserves. Ontario's GDP per capita ranks 14th among 16 North American peer jurisdictions and lags the median of the peers by $7,500 Roger Martin, chairman of the task force and Rotman School of Management dean, in a release. "But the gap in GDP per capita with North American peers shows that Ontario needs to move now to push for more growth." Dead money could be used "to invest in the physical and human capital we need to increase our productivity and close the prosperity gap," he added. Key Concepts: GDP- gross domestic product Stagnate- Showing no activity; dull and sluggish: "a stagnant economy".

1) A crazy one would be to not corporate tax, them, if only for the beginning. Maybe subsidies the companies the government wants businesses to be involved in, and to be willing to invest into.

2.I think the government should not intervene in the decisions different companies make unless it greatly affects the country's economy.

Canadians are more than ever drown in debt. When it comes to comparing with the neighbor (US) we are carrying more debt than them. Market observers argued that Canadian consumers will no longer be able to hold up rising household debt.

Some 6.4 per cent of Canada's total workforce-1.2 million people-now consists of part-time workers under 30 who wish they could work full time. university-educated Canadians experienced a relative increase in unemployment between 1997 and 2005 and a corresponding dip in relative wages, according to a federal government study. By contrast, those with a college, or even a high school education, managed to improve (or at least maintain) their outlook, relative to other workers. In fact, the only group that experienced a similar relative increase in unemployment during the period were those Canadians without even a high school diploma. Employers increasingly expect workers to pay for their own retirements. That's not easy when you don't have money. A survey by the Bank of Montreal found that only about 10 per cent of Canadians aged 18 to 34 had given any thought to retirement planning. Job security is also increasingly scarce. Stung by the 2009 recession, employers in industries ranging from retail sales to information technology are preoccupied with building a flexible workforce In an effort to close the gap, the federal government is planning to bring in as many as 3,000 foreign skilled workers this year by De-emphasizing the university-educated and focusing instead on welders and electricians. Economists say the market will eventually sort itself out. Wages and benefits in the trades should become more attractive as desperate employers try to woo new workers.

Consumer debt is becoming a larger threat to the Canadian economy as a whole. Meanwhile, businesses stopped expanding due to weak global growth.