Canada’s household debt is now bigger than its GDP, for the first time

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OTTAWA — The insatiable appetite of Canadians for cheap credit has been well-documented since the Great Recession, as consumers piled on debt by ever-increasing numbers.

Now, household borrowing has reached a new milestone, of sorts.

For the first time, the level of debt held by Canadians has exceeded the country’s gross domestic product as the red ink spilled over in the second quarter to 100.5 per cent of GDP, up from 98.7 per cent during the previous three-month period. Continue reading

Wells Fargo Reduces 66% of Credit Lines to Oil and Gas Players

Around 66 percent of Wells Fargo’s credit lines to energy exploration and production companies have been reduced as a result of the two-year drop in oil prices, The Street reported.

The E&P loans make up more than half of the San Francisco-based bank’s US$17.8 billion in loans to oil and gas ventures. Just under half of the outstanding loans have been vetted so far, according to a presentation by CFO John Shrewsberry on Tuesday. Continue reading

Beware 2018, when the next perfect banking storm may hit

Those looking for when the next financial crisis might be should set a reminder for January 1, 2018.

That’s when a host of new rules are scheduled to come into force that are likely to further constrain lending ability and prompt banks to only advance money to the best borrowers, which could accelerate bankruptcies worldwide. As with any financial regulation, however, the effects will start to be felt sooner than the implementation date. Continue reading

Greece introduces tax on bank withdrawals as elitists seek to criminalize cash

(NaturalNews) The Greek financial crisis continues to escalate, as the government recently put in place a controversial revenue-generating policy aimed at improving its economic position at the expense of its citizens.

The government will introduce a “surcharge” — really, just a tax on cash — for all cash point withdrawals, such as at banks or at ATMs, in what is proving to be a last-ditch, desperate attempt to prevent citizens from taking their money out of beleaguered financial institutions altogether.

Continue reading

Risk of Bank Failures Is Rising in Europe, E.C.B. Warns

The European Central Bank warned on Wednesday that the euro zone’s slumping economy and a surge in problem loans were raising the risk of a renewed banking crisis, even as overall stress in the region’s financial markets had receded. Continue reading