Canada's last "credit cycle" was 1990-94. During a credit cycle many people & corporations default on loans, & banks tighten credit. From 1990 to 2020 private sector debt/GDP grew from ~160% to 220% (blue). @ProfSteveKeen graph. The coming cycle will be exceptional. @ProfSteveKeen the red line on the graph is total government debt, which is about the same as during the last credit cycle, so that's not where the problem will be. But 99% of economists and media reports talk about the government debt, not the private sector debt.

Mooch: Central bankers hate systemic deflation because of "debt destruction". The last time it happened was the 1930s depression. Negative rates, QE are tools to avoid that fate. Tech progress but no wage growth. Trump is going after Powell, which increases market risk. On trade, the trade war won't be resolved for a long time, negotiators not optimistic. Market volatility has increased substantially, some ETFs could lock up due to illiquidity.

two years ago i was in a branch of a major cdn bank. I described a young couple, fictional, but based on a real situation, with 150k income, and expected to earn 200k soon. I said How Much? loans officer said "million dollars no problem" 1/n he added "depending on the down payment" so I played along, "we could help with that" so he said "million no problem". I wasn't shocked as I'd heard from many young couples that the banks were offering those loans 2/n