More than a decade of near-zero interest rates spawned a generation of bonkers financial decisions. Now, we are in the reveal and clean-up phase. Unlike fixed-term mortgages, other forms of credit quickly change with overnight policy rates set by central banks. As shown below, since 1960, courtesy of the Daily Shot, non-mortgage interest payments now suddenly consume 4.5% of employment income–the highest share in 15 years. {chart} Inventory for sale is spiking across most assets as available credit and able buyers contract. Home sales (in blue below) in the Greater Toronto and Montreal areas outright contracted ... (full story)