![My local small town bank manager told me this morning that there has been a massive shift in the number of accounts on thin ice, people kiting checks, people seeking short term loans, and accounts overdrawn. She said in 22 years she has never seen it like this. [1024x984 - 128KB]](https://pic8.co/sh/mmay6Z.jpg){kind=link}
The last real financial market collapse in Canada was during free trade in 1990 to 1992.
A modern 40 year old was only 10 years old at that time.
That means, about half of everyone who is now financially underwater has zero life experience of what this means and will be caught completely by surprise by our new rising interest rates / declining available credit market conditions.
Can you say bankruptcy and liquidations?
Cash is now king again. Credit is drying up fast.
Inventory must fight over the remaining cash in the system, so that means inventory sold well below cost in many cases. It is not so much about turning a profit as just keeping the doors open. Many of those doors will close anyways.
It's a good time to have cash, and a very bad time to be in debt.
Cash is now king again.
And due to inflation, it's evaporating like ice cubes on a hot sidewalk.
Yeah, it start's that way but it does a 180 if they stop printing money, (by raising interest rates,) where as it goes into Weimar wheel barrel hyper inflation if they keep printing more money, (aka Zimbabwe.)
They fear the hyper inflation more than the deflationary depression. Current economic wisdom says crush the inflation at all costs, so I expect rate increases to continue.
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