Saturday, May 29, 2010

Household Debt

There are increasing concerns about household debt in Canada. There's a saying, "When you point a finger, there's three fingers pointing back at your." The banks, via their analysts and economist, are figuratively pointing the finger at the consumers for borrowing more than they can afford. Um, sorry, but who exactly is lending consumers more than they can afford? It wouldn't by any chance be... the banks, would it?

Here's an idea, if someone is living beyond their means, the banks should stop giving them credit. But that would never happen, because while the banks metaphorically wring their hands over the problem, they are raking in the interest from the balances on all those credit cards and making record profits.

And perhaps, if the other corporations sold their goods at less profit and paid their employees better wages, consumers would be able pay cash for things again. But corporation exist solely to make profit and nothing else, they won't do anything either. Meanwhile everyone will continue to point at the consumer as the who is the problem. Bad, bad consumer!

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