Now that the summer is over I was invited once again to the Weekend Business panel on CBC News. You can watch it below!
The TL;DW version is:
- Latest inflation numbers: Not very good news as inflation seems to be supply-side, so it is much harder to control. Gas prices will also negatively affect the price of food even more for the next quarter at least. This means that interest rates will remain high for a while, possibly even into 2025. Also, deflation is not a bad thing if it is transitory and aimed at first necessity goods, as opposed to affecting consumption in the long run.
- The UAW strike: Not really my topic, but my comment here was that the strike was expanded significantly and that can impact car prices in the future as it will now target in-demand cars. Also, some factories in Canada may be facing temporary work stoppages.
- Equifax report on the increase in lending application fraud: while this is a relatively minor issue, it mixes two different things. First, mortgage fraud is on the rise. Most of this type of fraud is misrepresentation of income, which may be considered a white lie by some borrowers (16% according to a relatively old survey), but it actually is fraud and can have serious consequences for borrowers. The second is auto and credit card fraud. This one is mostly done by criminals that steal identities. The recommendation here is clear: monitor your credit at least monthly and if you see anything that you don’t recognize, immediately contact your financial institution.
I’m on next on October 14 and November 4.