Not the best of news for those with budgets already squeezed by record breaking debt loads, but like it or not a barrel of oil traded over $100 again today for the first time since October of 2008. (NEWS STORY)
With all the unrest and uncertainty in the Middle East some are predicting we'll be paying $2.00 or more a litre by the end of the year. Increased costs for those traveling, for food...for anything and everything that relies on transportation to bring it to market.
That means inflation, and inflation historically means higher interest rates as central banks tighten monetary policy...more bad news for Canadians in heavy debt. Higher rates means our housing market will take a hit, as buyers' ability to borrow is squeezed like it was in the earlly eighties as house prices tanked an average of about 25%. Good news for those with money saved though, higher returns on interest bearing investments and cheaper homes down the road.
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