The consumer is packing it on

In case there was any doubt, Canadians are making good use of their credit. In the month of September, our balances on personal loans, credit cards and lines of credit grew by $3.15 billion. I’d offer that its entirely a function of low interest rates, but half of the new debt was put on the plastic — not known for cheap “prime plus” spread.

Oddly, personal savings grew by $2.5 billion. These can’t be the same consumers, can they? No wonder people sense a growing disparity.

MRM