The Financial Post reports in its Thursday, Aug. 13, edition that Canada's positive economic indicators boosted the loonie to nearly 71.8 U.S. cents, but this momentum has stalled. The Post's guest columnist David Rosenberg writes that the currency appears unaffected by Donald Trump's announcement of a 50-per-cent tariff on many Canadian goods starting Aug. 19.
In the second quarter, 37,523 Canadian consumers filed for insolvency, a nearly 7-per-cent increase from last year and the highest since late 2009. Bankruptcy filings exceeded 2009 levels in the past two quarters, with actual personal bankruptcies reaching 8,600, up 10.3 pe rcent year-over-year.
Homeowners' insolvencies rose 4 per cent, now making up nearly one in ten distressed debtors. This reflects the risks of negative net equity amid prolonged residential real estate deflation and high loan-to-value mortgages from origination.
Meanwhile, the share of residential mortgages now in arrears has risen in the past year to a decade-high and is a bit above the first quarter 2008 level that preceded the Great Recession.
The household sector's debt/income ratio is far above the level that touched off the United States financial crisis of 2008-2009.
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