Canadian Consumer Debt Poses Recession Risk, Moody's Analytics Report Says - 0 views
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With Canadians so deep in debt, it would be extremely difficult for domestic spending to pick up slack in the economy if things started to go downhill. That could result in a serious downward spiral in employment levels, household spending and the quantity and quality of credit outstanding, the report says.
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"Households are spending money they assumed would be coming, then they realize they've run over the cliff because income from exports from these trading partners is not materializing and that's translating to weaker jobs.
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domestic consumption is usually the more steady contributor to economic growth compared to exports and investment. But this time, household debt is out of control.
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