In our hierarchy of risks, we would say that the greatest risks are external. You referenced the European crisis quite rightly. Our expectation is that that crisis will remain contained. That is different from it being resolved, but it will remain contained.
The next in the near term is the potential resolution, or not, of the so-called fiscal cliff in the United States. This is something that, if not resolved—that's not our expectation, but we're no wiser than anyone else in terms of the eventual resolution of this--if the fiscal cliff were not to be resolved and all of the measures were to come into force that are on the books in the United States, the U.S. would almost certainly be in recession next year with a knock-on effect, obviously, for Canadian exporters, business, investment, etc. We're not predicting that, but it's a possibility.
I would note, as we do note in the report, that we do have a domestic risk that bears attention. That is the level of household indebtedness. This is the risk that we and others have been flagging for some time. It has built over time, since we've both been here in 2008. At present, given measures that have been taken by OSFI, by the government, given as well the stance and the leaning of monetary policy in Canada, there are mixed signals. I say that in a positive sense in that there are some signs that the pace of accumulation of household debt is certainly slowing. The pace is slowing, though it is still accumulating, and some adjustment appears to be under way in the housing market. This requires continued vigilance by all parties, and we certainly intend to play our part in that.