We're richer, but deeper in debt
September 14, 2009
14 September 2009
We're richer, but deeper in debt
This article is extracted from the 14 September 2009 edition of “globeandmail.com”.
Canadian households were wealthier in the second quarter of this year after losing ground in the three previous quarters, with stock market gains leading the recovery, Statistics Canada said Monday….
“The resulting increase in the value of household financial assets (including shares, mutual funds and pension assets) was the principal factor behind the rise in household net worth,” Statscan wrote in a report on national balance sheet accounts.
The use of credit also rose more quickly in the quarter, with notable borrowing for mortgages as resale housing markets picked up, and an upswing in consumer credit as car sales increased.
“Despite the growth in credit market debt, households' debt relative to net worth edged down during the second quarter, as gains in assets more than offset the increase in liabilities,” Statscan said….