Canada flagged as hidden $14 trillion credit bubble stokes global crisis fears

Is this what made the Canadian Dollar plummet at 2pm EST (18:00 GMT) on 9/18/17? I've been trying to figure what happened.

Every loan has a lender and a borrower - no matter what you call it. Each lender and borrower takes on the responsibilities inherent in the loan contract. Provided neither side is underwrittten by a third party (usually the government itself after the fact) then any problems will come back to the lender or borrower to enjoy and deal with. The concern expressed here is that, just as happened in the GFC, the financial system may not be efficient enough to unwind such contracts quickly enough. Central banks have worked very hard to monitor and to improve the efficiencly of the financial system but Yellen, Carney and many others continue to urge caution in declaring victory. And given the large continuing gap between 'normal' and current monetary conditions in all countries it is clear that significant financial system risks still remain.

IMHO one of the major problems is the sluggish pace of global investment and GDP growth which again in my opinion is increasingly because politically inspired economic sanctions are confusing the pattern of investment opportunities and therefore the demand for capital - seemingly locking in this very extended period of low interest rates. So the 'news' in this story is a new piece of evidence for the larger body of existing evidence. Debt in itself is not a problem - net net there is no debt on Earth since the borrowing and lending add up to the same number (opposite signs). What is relevant is the institutional arrangements for managing the scale of potential defaults.

Me too and this took a couple of pips from me...

You are saying that debt in itself is not a problem : but this is not true when debt is created with leverage. A loan is created based on a collateral. But a debt created with a high leverage, is a time bomb regardless of the collateral because the value of that collateral can erode quickly . The key is leverage not debt. It is not as simple as a it was before then there was a borrower and a lender . This derivatives are kind of a spider net connecting the whole system to each other , that's why it is creating a systematic risk. I believe the world should get rid of all kind of derivatives except the very basic forms like commodity futures . And I believe governments should not carry any debt.

You have some learning to do. A mortgage is leverage. The real problem is laziness in entering into contracts.

BOOOMMMMMM!

Which country will be next?

Not knowing me and what I know shouldn't make you lazy to write these sentences. A mortgage is a contract. Leverage comes into play when the bank says you can have the house without any downpayment or just a fraction of the original price. It is not laziness. These people are crazy hardworking and they love making money and they are smart and creative to create contracts that they can sell as if these are safe havens. But there are some many lope holes in the system that leaves the door open for such people . Maybe it is the laziness of regulators. But then think about what happened to regulators after 2008 ? Almost all of them kept their seats and they put all the blame to bankers , hedge fund managers etc.. There are bigger problems which we can discuss here but about this subject I am where I were.

UK ....same Central Banker ......Oooooops

if you put £1 into a bank, they can in theory loan out £10, there is no equilibrium in some parts of these markets, why do you think most brokers over leverage accounts?

How does that work.. ?

Be good if Financial Post gave direct link to the BIS report.
Im not really interested in their opinions.
I am in the facts uncovered by BIS economists Report.

i agree governments in debt dont make sense every dollar they spend cost them 2 dollar just rework banking to give gov power to loan out to a 1/5 of the market for 5-7% and then only use the earnings from lending or if no ones borrowing build a bridge and maybe even trumps wall by lending t to yourself and paying it off. There is no inflation your using the same system as banking now you just cut out the middle man and put the gov back up top of money not behind borrowing but lending, building assets and investing in technology aka universities, if they go into debt refinance them with shares that entitle the holder to a portion of the governments yearly revenue namely 2% and so the more shares sold the less each holder gets, but it involves the public so they will vote better if they are investing in the new government and get a new government.

Not my words: "The best predict is the past behavior".

Every country which had/is having aggressive economic growth rate will have also an aggressive level of correction at some point. This is unavoidable because the elements sacrificed to push the economy up, will need to be compensated later. There's no escape. What directly pulls the economy into a correction zone or in some cases to a crisis due to a snow ball effect.

Or as Sir Isaac once wisely said "Each and every action has an equal and opposite reaction" ... Well, we've had the action - MASSIVE Stimulus - lets have a look at how much that house is worth after the reaction shall we