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
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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."
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.
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
4. hpwatcher said...
Lovely heading, mountain goat.
There is something rotten everywhere!
5. debtfree said...
the ECB saved your bacon....