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Swedes' Lover Affair With Luxury and Credit About

to end, as mortgage rates about to double...

Gjeebes
post 12.Nov.2018, 04:08 PM
Post #1
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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Bsmith
post 12.Nov.2018, 04:19 PM
Post #2
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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wallace1837
post 12.Nov.2018, 04:37 PM
Post #3
Joined: 21.Oct.2012

QUOTE (Bsmith @ 12.Nov.2018, 04:19 PM) *
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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Gjeebes
post 12.Nov.2018, 04:43 PM
Post #4
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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skogsbo
post 12.Nov.2018, 07:23 PM
Post #5
Joined: 20.Sep.2011

QUOTE (Gjeebes @ 12.Nov.2018, 03:43 PM) *
"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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wallace1837
post 12.Nov.2018, 07:32 PM
Post #6
Joined: 21.Oct.2012

QUOTE (skogsbo @ 12.Nov.2018, 07:23 PM) *
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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skogsbo
post 12.Nov.2018, 08:06 PM
Post #7
Joined: 20.Sep.2011

QUOTE (wallace1837 @ 12.Nov.2018, 06:32 PM) *
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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wallace1837
post 12.Nov.2018, 08:09 PM
Post #8
Joined: 21.Oct.2012

QUOTE (skogsbo @ 12.Nov.2018, 08:06 PM) *
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.

You know what a mortgage is right?
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skogsbo
post 12.Nov.2018, 08:14 PM
Post #9
Joined: 20.Sep.2011

QUOTE (wallace1837 @ 12.Nov.2018, 07:09 PM) *
You know what a mortgage is right?

And how does that relate me saying private car leasing is now widespread across Europe.
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skogsbo
post 12.Nov.2018, 08:20 PM
Post #10
Joined: 20.Sep.2011

QUOTE (wallace1837 @ 12.Nov.2018, 07:09 PM) *
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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Gamla Hälsingebock
post 12.Nov.2018, 09:02 PM
Post #11
Joined: 21.Dec.2006

A most appropriate bumper sticker states:

"Don't laugh...It's paid for" rolleyes.gif
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Bsmith
post 12.Nov.2018, 09:36 PM
Post #12
Joined: 25.Jun.2009

QUOTE (skogsbo @ 12.Nov.2018, 07:23 PM) *
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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skogsbo
post 12.Nov.2018, 10:23 PM
Post #13
Joined: 20.Sep.2011

QUOTE (Bsmith @ 12.Nov.2018, 08:36 PM) *
...

Coming from Yorkshire and living in Småland I expect to get the same mileage out my clothes as a car!!
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Gamla Hälsingebock
post 13.Nov.2018, 12:33 AM
Post #14
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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Billy_UK
post 13.Nov.2018, 08:54 AM
Post #15
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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