Do you like to knit? Play pick-up hockey? Watch birds? Go for long walks?
If you say ‘yes’ to cheap or free hobbies, good for you.
If ‘no’, and shopping is your thing, I’d like to advise against it.
Money is tighter and likely to get tighter.
The Bank of Canada is now warning consumers to slow down the spending. Risk levels are “elevated.”
Definition of risks: Consumer finances are too stretched to cope with a future financial shock, e.g., rise in interest rates, job loss.
The potential for a spike in unemployment, drop in property prices, and negative impact on the Canadian economy because of the debt crisis in Europe is real.
Because another big threat is looming on the horizon (Yes, the American debt is huge and growing and could kill us at any time but there’s another problem!), i.e., “an increased aversion to risk taking in the financial markets that could dry up access to credit for both financial institutions and other borrowers” (that means you, Jocko. Put away your credit card!) we could all be in big trouble sooner than we once thought. (Dec. 10, London Free Press)
So, about that cheap hobby to fill your time.
You could...
play 50-plus hockey,
clean out your basement,
take stuff to the Salvation Army,
or play Euchre for M&Ms, not Loonies.
Pick one. A hobby is more fun that falling deeper into debt, isn't it?
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More from This Old Economist here.
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