Acting Man: ‘Scandinavian Sorrows’

As usual, I am not entirely convinced by their analysis of central bank action (‘Luckily the bubble was not the Danes’ fault. See, the central bank had to impose negative interest rates to ‘defend the Krone’s peg to the euro’. The credit bubble was practically forced on them at gunpoint!’ Really?).  But otherwise this a very sobering situation and the picture of the real estate price developments (reprinted below) looks very similar to that of the Netherlands and to some extent, Finland, but perhaps even more extreme.

Single family home prices in Denmark in crowns per square meter. The value of collateral is now falling after the strong price increases from 1994 to 2007 – via globalproperty.com.

One more country to worry about, it seems. And Danish banks do have significant holdings elsewhere in the Nordic countries, e.g. the Sampo bank in Finland.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s