Monday 18 February 2013

Finland's Neighbour Debt Bubble...

“Swedish households today are among the most indebted in Europe and we cannot have household lending that spirals out of control,” Martin Andersson, the director general of the Financial Supervisory Authority, said in an interview in Stockholm. 
The FSA is ready to enforce a cap limiting home loans relative to property values to less than the 85 percent allowed today, Andersson said 
“What we saw in the 1990s crisis was that if you bought a home with a 90 percent debt ratio in 1991, it took about six or seven yearsuntil you were back at a level where you had a property that was worth more than your mortgage,” Andersson said in the Feb. 13 interview. “That is a very long time.” 
“One should be prepared for a downturn,” Andersson at the FSA said. “House prices cannot just continue upwards in eternity.” source 
Some charts ...

8 comments:

Anonymous said...

In the source article, it is stated that Sweden is having interest only loans. It is well down that these tend to increase the LTV rates, making these mortgages harder to securitize. Do you know if such loans also exist in Finland? Because I believe they don't?

Also, I wanted to let share that I heard house prices in Estonia are rising. Do you have any information about this?

HousingFinland said...

in 2008 estonian housing price overall slump by 40% and recovered ground after :http://www.globalpropertyguide.com/template/assets/img/Estonia-annual-house-price-change-graph-1.gif

coming to sweden, their central ba(n)kers has pledge to maintain interest rates low or even reduce them at least until 2016 - highlighting that monetary policies are adequate for dealing with asset bubble. So to me there is a recognition of a bubble in sweden and the approach is the "greenspan" one (ex cantral banker from the US) is to let grow until it burst and handle the effect afterwards... (although when interest are as low as that i wonder how they will deal with it...)

Sweden is testing a new approach which could either propel it toward a better or worse economical state...

Finland has not control on the monetary policy, it can only play with fiscal tools and cross its fingers that europe will recover and that it can leverage itself or profit from a more powerfull Russia.

Anonymous said...

Are you in need of a loan? Do you want to pay off your bills? Do you want to be financially stable? All you have to do is to contact us for more information on how to get started and get the loan you desire. This offer is open to all that will be able to repay back in due time. Note-that repayment time frame is negotiable and at interest rate of 3% just email us creditloan11@gmail.com

Bahaya Osteoporosis Pada Tubuh said...

Any kind of helkp woul bbe greatly appreciated!

pls visit : Obat Herbal TBC Tulang Belakang

Loan Offer said...

Hello Everybody,
My name is Mrs Sharon Sim. I live in Singapore and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of S$250,000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of S$250,000.00 SG. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs Sharon, that refer you to him. contact Dr Purva Pius,via email:(urgentloan22@gmail.com) Thank you.

BORROWERS APPLICATION DETAILS


1. Name Of Applicant in Full:……..
2. Telephone Numbers:……….
3. Address and Location:…….
4. Amount in request………..
5. Repayment Period:………..
6. Purpose Of Loan………….
7. country…………………
8. phone…………………..
9. occupation………………
10.age/sex…………………
11.Monthly Income…………..
12.Email……………..

Regards.
Managements
Email Kindly Contact: urgentloan22@gmail.com

Ummas said...

A reliable loan service which I personally have experienced.
www.coolrahoittaa.fi/pikavippi-ilman-luottotietoja

Abdul Muqse said...

Are you a business man or woman? Do you need funds to start up your own business? Do you need loan to settle your debt or pay off your bills or start a nice business? Do you need funds to finance your project? We Offers guaranteed loan services of any amount and to any part of the world for (Individuals, Companies, Realtor and Corporate Bodies) at our superb interest rate of 3%. For application and more information send replies to the following E-mail address: standardonlineinvestment@gmail.com
Thanks and look forward to your prompt reply.
Regards,
Muqse

INVEST WITH $200 AND GET A RETURNS OF $2,000 said...

Invest with 200$ and get a returns of 5,000$ within seven business working days.
Why wasting your precious time online looking for a loan? When there is an opportunity for you to invest with 200$ and get a returns of 5,000$ within seven business working days. Contact us now for more information if interested on how you can earn big with just little amount. This is all about investing into Crude Oil and Gas Business.

Email: investmoneyoilgas@gmail.com