Camera Dashboard: Housing Bubble in Norway

Friday, December 31, 2010

Housing Bubble in Norway

Here is a quick post under the theme "Housing Bubbles Around The World". This one is from Norway, courtesy of reader Espen Johansen.

Dear Mish

Thank you for your effort to spread the economic truth in the jungle of lies. The Norwegian Central Bank and the authorities has fed the bubble monster for years by keeping interest rates too low too long, and the biggest culprit, socializing credit. (We have a socialist/communist government, and have had a blend of that since 1990)

I have tried sending letters to the finance ministry, and the central bank, but no one seem to wake up. About 90 % of all households have Floating rate mortgages.

I do not blame the banks, they know they will be bailed out, and compete doling out as much money as they can to make a profit for share/bondholders with the given terms of a bailout waiting.

A picture says more than a 1000 words, and enclosed are some graphs I believe tell it all.

Sources: The blog �krakk!�
House price indices for Norway

End the central bank cartel, and we will see prosperity and peace.
Merry Christmas and a Happy New Year
Med vennlig hilsen/Best regards
Espen Johansen