I probably should have typed ARE, but after thinking because I'm on the fence about everything and maybe AREN't was more appropriate... some Canadian's ARE really heavy in debt... 150% average household debt over average household income. That's like $145,000-ish per average household.. average income per household in Canada is approx. $90,000 x 1.5. But we... ARE talking average... so there's a probably a few million households that ARE really skewing the national average... that ARE really heavily in debt... but we aren't given that data. So the majority of Canada's have debt that is likely manageable, even with other average expenses... and there are probably Canadians without debt... but... austerity is coming... and what kinda effect is that going to have on the markets. Are we really too far in debt???... and where is the tipping point???... And are Canadians going to be able to continue to gouge on debt to pay for more things and stuff. I'm willing to be proven wrong... but I need clear data to tell me to change and alter my opinion... so I'm okay with inflation eating my investment, and letting some bank earn money off my money... rather than losing it... same with I'm okay with watching the price of houses and condos take off... because eventually.. that price will fall. Some random event is going to hit the Toronto downtown condo market. Whether it's something like SARS, or just a lack of demand from investors worldwide... because maybe Mr. (no-Gravy) Ford implements a non-resident foreign property tax rate, or worse rent controls. Or interest rate knock the wind out of the sales... or some other event has some unintended consequence which cluskerfucks everything... and we all eat humble pie.
If it consoles you at all, people just bought German bonds going out 6 months at -1% interest. Yes, that is right, people are so worried in Europe that German bunds were sold to investors which guaranteed to return them 99 Euro for every 100 invested.
This situation has occurred in other parts of the world in the past as well and briefly occurred in the US last year on Money Market funds but the banks lowered their commissions to make return of Money market funds 100% whole.
The fact that people are willing to lend the US government at 2% or under for 10 year money is a good indication that a fair amount of people share your concerns.