| Nettles said: No clue? I ask again, if Swedens economy is so great then why do they have negative interest rates? Ive been posting on other economics based forums for over a decade so i knew previously that Sweden also has a housing bubble and sky high personal debt levels.HSBC even reported a month ago that Swedens housing bubble was unsustainable, see for yourself : http://www.businessinsider.com.au/hsbc-sweden-housing-bubble-not-sustainable-2016-1?r=UK&IR=T I live in Australia, we have the same housing bubble and high personal debt load issues as Sweden but i don't run around kidding myself that the economy is in great shape, it is deteriorating here.Still, our interest rates are at 2.00% so we have room.What are you guys going to do when things get worse, drop rates even further into negative territory? You might as well hold cash, then you can avoid the negative rates.You still have cash right? I heard some banks have stopped stocking banknotes and they are tearing out ATMs all over the place.It ain't good dude. |
Swedens housing bubble is a big concern for the government and the national bank. They have tried different measures to address this but our version of a constitution puts many limits on how much the state can regulate interestes for individuals and put up demands on how you can receive loans. So its a tricky situation but they are working hard on it.
The negative interest rate is a response to the continuing instability around the world and, althougn the national bank has received criticism for maintaining it at such a low level, the argument from them is that they want to secure so that we don´t run into extreme inflation of our currency when we don´t now how things will develop in Greece, Spain, Italy and some of Eastern europe. The problems with the refugee wave also causes a lot of instability. So instead of inflating the economy, they are trying to hold it as steady as possible. We had a GDP growth of 3.9% last year and unemployment is going down quite fast so it seems to have an effect.
Also to the OP: We who are liberal love Sweden. We just don´t se how being open to other countries and people can be seen as self-hatred. I love Sweden BECAUSE we are an open society that have relatively open borders. We also have something called "Allemansrätten" which basically means that all land, private or public, is accesible to all citizens. I doesn´t include houses or private lawns, but you can camp out in any woods, go through private or public forests picking berries and mushrooms and enjoye nature wherever you are in Sweden. I think that has also had a great effect on our oppenes towards other countries.
