BRIEFS

Canadian housing prices jumped over 90% in the last 10 years.

At the same time the country rode a natural resources boom that with all the deflationary concerns around the world that's beginning to go snap, crackle and possibly slump. The Loonie, Canada's dollar, so far this year dropped 1.2% against its American counterpart, according to the WSJ.

Home sales have slowed with home prices yet to follow, but many investors believe they will. Canadian household debt figures are estimated at 165% of of disposable income, not far from what U.S. consumers were carrying before the subprime balloon burst. That's a trend that tracks the country's rise in housing prices.

Demand for homes pushes up not only home prices but demand for things that go in them. Consumption and debt result.

Lower oil prices knocked nearly 0.5% off economic growth during the last half of last year in an economy that  managed to grow only 1.8% in 2012. And don 't forget what's happen so fart this year to the yellow stuff--gold.

With commodities tanking, many expect Canada will do the same.
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We've written about PIK bonds before. Payment in kind paper that was popular back in the early 1980s when interest rates were 14-15% and higher. Now with interest rates 30 years or so later at the other end of the spectrum, PIKs are making an apparent comeback.

So what does that tell you, if anything?

http://online.wsj.com/article/SB10001424127887324744104578470812182691622.html
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