Canada has two Economies-One is in recession, One is an Epic Bubble

I sometimes think the two economies are connected by psychology. Canadians are acutely aware of the true state of the economy and their "nesting" instinct is in full bloom. People need security, and right now, a house represents security in an insecure world.
Unfortunately though, people are getting in enormous amounts of debt for that security, which will ultimately cost them dearly.

The Auto loan bubble; where headlines report "Highest car sales every," but don't mention how they were achieved. Car dealers have never offered such loose credit terms, but that is only half the story. When buying a car, you are encouraged to consolidate your credit card, line of credit, or other debts under your car loan.
On top of that, car loans are being offered for terms as long as 8 years!
So, monthly payments of $150 can be had to buy $40,000 cars, when you take into consideration the lowest rates in history.
This is a credit fueled bubble and will be disastrous as millions realize they owe $25,000 on a car worth only $10,000 when they take it in to trade up. Or when a homeowner renews a mortgage on a home which is worth $100,000 less than they owe. The days of banks turning a blind eye to such things will be over and people will be forced to cover the difference or lose their homes or cars. This will cause an even greater default cycle and send more houses and cars onto the market, thereby lowering prices further.
For now, governments are reporting double digits price increases in houses, this is so they can charge double digit increases in property taxes, because governments are bankrupt....really bankrupt.

This is the last card in their hand, lying about price increases to justify increasing property taxes. It's what's keeping them solvent just a little longer, months. Behind the scenes, they are already turning the lights out and emptying out their desks, gathering their belongings and checking off all last minute duties.

The great government ponzi scheme is now coming to a close, and it will go out with a bang. The biggest bang in world history, as a global credit bubble, used to create what appears to be a strong economy, pops. At that time, the thieves will make out the back door with their stolen loot, and leave the damage to the masses, who will be in such terror and shock, they will not even notice. This is the same strategy used by governments every time because it works so well. People do not know history, and are therefore destined to repeat it.