Swedes' Lover Affair With Luxury and Credit Aboutto end, as mortgage rates about to double... |
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Swedes' Lover Affair With Luxury and Credit Aboutto end, as mortgage rates about to double... |
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#1
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Joined: 20.Feb.2012 |
http://www.friatider.se/ingves-bol-ner-nto...-att-f-rdubblas
1) "Interest rates on mortgages will then double, "said Stefan Ingves, according to DI." 2) "He emphasized, however, that the Riksbank can not adjust monetary policy to the most indebted,..." And what happens when you live the champagne lifestyle on a beer budget? Coming soon to a Swede near you... |
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#2
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Joined: 25.Jun.2009 |
The last time I was in Sweden, I was astounded at all the new cars (many of them gas-guzzling SUVs) on the road. It looked as if everyone had suddenly grown very prosperous.
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#3
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Joined: 21.Oct.2012 |
The last time I was in Sweden, I was astounded at all the new cars (many of them gas-guzzling SUVs) on the road. It looked as if everyone had suddenly grown very prosperous. It is simple and well documented. People have started using their house like a credit card... History repeats itself, but this time it is with a nation with his head buried in the sand. They cannot see, they cannot hear, they cannot learn. |
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#4
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Joined: 20.Feb.2012 |
"It looked as if everyone had suddenly..."
...access to cheap credit. Do Swedes actually "own" those new shiny thingys they buy? |
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#5
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Joined: 20.Sep.2011 |
"It looked as if everyone hadSa suddenly...". ...access to cheap credit.. Do Swedes actually "own" those new shiny thingys they buy? No Private lease hire, like most of Europe is booming. Anyway. Back to your original interest rates will double, treble, quadruple... etc. Yeah they will at some point in the next decade or two. That's the nature of markets, they are cyclical, never stable. If an interest rate at 8% doubles oooouch!! If rates at historic lows double slowly over several years, the pain is lessened and absorbed over time. Still pain, but no melt down. That said the last recession didn't hurt enough and debt driven markets never suffered enough for them and society to reform, so there is little doubt more pain and recession is to come. Your beloved Germany will suffer hugely when European spending drops, you should be grateful for Swedes borrowing while it lasts. I'm the owner of a 9 year old car bought for cash. So no pain here. |
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#6
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Joined: 21.Oct.2012 |
No. . Private lease hire, like most of Europe is booming. Are you arguing the fallacious "it is the same everywhere, therefore no problem"? That argument only works for illiterate who cannot think for themselves, i.e. it works really well in Sweden. Nordea is reducing their interest rate today. Nordea basically says: "Come and borrow more and at a lower cost from us, the government will bail us out when shit hits the fan and we know it" https://www.dn.se/ekonomi/nordea-sanker-ran...pa-flera-bolan/ . |
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#7
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Joined: 20.Sep.2011 |
Are you arguing the fallacious "it is the same everywhere, therefore no problem"? That argument only works for illiterate who cannot think for themselves, i.e. it wo
... (show full quote)
People were talking about cars. I was saying private leasing is widespread across Europe. Which has absolutely nothing to do with nordea, their rates and your comment. |
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#8
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Joined: 21.Oct.2012 |
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#9
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Joined: 20.Sep.2011 |
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#10
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Joined: 20.Sep.2011 |
You know what a mortgage is right? Oh and yes I do, I have 4, although 3 are on the same asset, where we just split the loan in three lots and fixed them on different timescales, so any rate increase will only hurt in small measures and we react accordingly. I'm sure you read my comment properly where I said I do think society is too debt driven and more pain is coming. |
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#11
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Joined: 21.Dec.2006 |
A most appropriate bumper sticker states:
"Don't laugh...It's paid for" ![]() |
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#12
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Joined: 25.Jun.2009 |
I'm the owner of a 9 year old car bought for cash. So no pain here. My car is 18 years old, gets 35 mpg and has 215,000 miles on it. I bought it used and plan to keep it another 5 years at which point I will sell it and try to buy one just like it with lower miles. But my underwear is new. |
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#13
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Joined: 20.Sep.2011 |
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#14
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Joined: 21.Dec.2006 |
Don't believe in new cars anymore(since 1966), last car I drove for 18 years, present car is 1999 model...New car depreciation is a turn off...
Aye laddie, it's thrift!!! |
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#15
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Joined: 5.Aug.2013 |
Leasing is the only sensible thing to do anyway. You’d be mental to buy a new car for 400,000kr when you’ll be driving it for 4 or 5 months on filthy wintry roads. We bought ours second hand and I don’t think we’ve got through a winter without a few chips and scratches to the body work and windscreen. One thing that does astound me with Sweden is the amount of people who have lavish mobile homes. They cost a small fortune and are undoubtedly bought on credit.
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