Wednesday, Aug 27, 2008

Something Is Rotten in the State of Denmark

Telegraph: ECB slammed by Nobel economist as European slump deepens

Denmark suffered its own Northern Rock-style debacle on Monday when the central bank had to launch a rescue of Roskilde Bank after a run of withdrawals by depositors. The state is now guaranteeing $8bn (£4.3bn) of debts. It is the biggest bank rescue in Scandinavia since the financial crisis of the early 1990s.

Posted by mountain goat @ 09:59 AM (533 views) Add Comment

5 Comments

1. mountain goat said...

Best bits of the article are towards the end, looking at the hpc in Scandanavian countries.

"Denmark's economy has been destabilised by its membership of the European Exchange Rate System (ERM), which forced it to import interest rates that were much too low for the country.
The result was a wild credit boom that pushed household debt to 260pc of disposable income, the highest level in the world. This is worse than Britain (159pc) and America (135pc). The property boom has now turned to bust. House prices have fallen by 10.7pc over the past year in Copenhagen."

Wednesday, August 27, 2008 10:19AM Report Comment
 

2. holding out said...

AEP is and always has been anti Euro. I'm not saying I disagree with him totally but you have to say that in order to justify his arguments he picks exapmles from Sweden and Denmark. They aren't even in the Euro.

Wednesday, August 27, 2008 10:31AM Report Comment
 

3. brian t said...

If we've got to have the Hamlet references, how about:

Neither a borrower nor a lender be:
For loan oft loses both itself and friend.
-- Polonius, Act I Scene iii

or

Rich gifts wax poor when givers prove unkind.
- Ophelia, Act III Scene i

Wednesday, August 27, 2008 10:45AM Report Comment
 

4. hpwatcher said...

Lovely heading, mountain goat.

There is something rotten everywhere!

Wednesday, August 27, 2008 10:53AM Report Comment
 

5. debtfree said...

the ECB saved your bacon....

Wednesday, August 27, 2008 12:56PM Report Comment
 

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