“D” stands for debt, and Canada Monday reached a high-water mark: For the first time, household debt hit 148% of disposable income and, for the first time since the late 1990s, topped the US equivalent. 

Carney, the Bank of Canada Governor, warned of the rising debt burden among Canadian families, and the risks they face when interest rates inevitably rise. 

“Experience suggests that prolonged periods of unusually low rates can cloud assessments of financial risks,” he said in a speech in Toronto. “Low rates today do not necessarily mean low rates tomorrow. Risk reversals when they happen can be fierce: The greater the complacency, the more brutal the reckoning.”

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