Can/will Canada avoid the Boom Bust cycles of Past?

Is Canada heading for a similar fate as the US?
Baby Boomers have turned Canada in to a nation of spenders.
Its amazing how much of this latest boom has been fuelled by debt? Similar to the US.
As always there is good debt ( mortgage) and undesirable debt ( credit card debt from over spending).
An increasing number of Canadians are in negative monthly cash flow, too much Spending not enough Income? Their increase in spending has out paced their increase in disposal incomes.
How are Canadians paying for this lifestyle?
Debt, Credit Cards, Lines of Credit, Home owners lines of Credit has become the norm.

Borrowing more, paying interest only on loans, minimum payments on Credit Cards has pushed Canadian debt levels to an all time high, and yet no one seems to be raising the Red flags.
We are led to believe the frenzy ( no longer a boom) in commodities will be enough to prevent Canada from a similar fate as the US.
The party is almost over. Its been a nice 7 year run.
Canada will be heading for the same fate as the US once the housing boom turns to bust.
US, Ontario/Quebec then BC/Alberta, that's the housing story.
Manufacturing then the resource sector, that's the employment (unemployment) story, going up or down.

History repeating itself. Shades of the early 80's and 90's.


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