Hey Canada!... keep spending that money you don't have...

Canadian media are full of scary stories like this one.

The gist of these stories is that Canadians are in debt like never before.

I've been around long enough to remember when first mortgages on your main residence went over 12%.

Now they're under 3%, and have been for some time.

Borrowing $100,000 today costs you about three thousand dollars a year in interest.

In 1981 borrowing that same amount cost you around fifteen thousand dollars in interest.

That's why Canadians have taken on record amounts of debt.

They can afford it.

So these scary stories aren't all that scary.

Unless the prime rate takes a big jump.

In which case Canadians are screwed.