Excessive reliance on foreign financing tests the will of foreign investors. Overseas creditors do not have an unlimited appetite for North American paper. Governments in both countries should take note of how the Canadian private sector redressed its debt-equity balance. Both the corporate and personal sectors in Canada have improved their balance sheets since the pre-recession period. Mackness and Howell said.
Excessive debt loads demand a big slice of earnings for debt service.
Although the Canadian corporate sector has improved its debt-equity position, it's taken five years of strong economic performance to do it. The U.S. and Canadian governments, on the other hand, continue in the red despite economic expansion. Lectures to the Third World from North America would carry more weight if its own fiscal house was in better order. This information is provided by the Financial Post. All rights reserved.