Nettles said: Questions for Swedes : According to HSBC house prices rose 18% in Sweden in 2015.Article : http://www.businessinsider.com.au/hsbc-sweden-housing-bubble-not-sustainable-2016-1?r=UK&IR=T 1.If house prices rose 18% how much did wages grow? Is this sustainable? 2.If house prices rose 18% in one year why is the government persisting with negative interest rates? 3.Are you concerned about social stability in the event of an economic crash brought on by a collapse in the housing bubble, if not why? 4.How could the government support 160,000 new migrants per year in an economic crash when they are housing thousands in tents now?

1: No, it's not sustainable and the major political parties has been trying to find a solution to limit the rising prices in the last couple of years. But there are limits in how much the government can regulate terms for how people borrow money when getting houses. But it's a really troublesome issue. There are talks about creating a similar program like what we had in the 70's, when the government set out a goal to push for 1000000 apartment within a 10 year period. Doing something similar today would go a long way to dampen the housing market.

2: It would be irresponsible to artificially inflate the economy when we still experience massive financial issues on a global scale.

3: Not really. Sweden almost never experience social unrest since we, even when the economy is bad, has a strong social security system to rely on in order to support low income families, immigrants and so on. The system will be pushed but my experience is that it will hold.

4: We can but the system will be hard pressed. Remember that about half of those that came during 2015, will be deported since they don't have sufficient reason to seek asylum. It's the same every year but since we received about twice as many last year than projected, the system will be strained.

Negative interest rates themself are irresponsible no?
Why punish savers and retirees who must now pay the banks in order to keep their money in there?
These ultra low and negative rates are what caused the big housing bubble, it's the same here in Australia.
There is no escaping this economic mess without severe recession/depression.Endgame is hyperinflation.We will see how strong your society is.

Nettles said: Negative interest rates themself are irresponsible no? Why punish savers and retirees who must now pay the banks in order to keep their money in there? These ultra low and negative rates are what caused the big housing bubble, it's the same here in Australia. There is no escaping this economic mess without severe recession/depression.Endgame is hyperinflation.We will see how strong your society is.

That's not how it automatically works. The purpose of the national negative interest (called Repo interest) is to kick start the economy by growing consumption. It is right that it might create a housing bubble, but this is offset by the banks now demanding that you cover atleast 15-20% of the price for a new house yourself in order to even be eligible to buy. The government is also looking into forcing those who take loans to start paying them off from the start.

The savings interest is not automatically on the negative side just because Repo interest is. At the moment I think the average interest at the banks is something like 0.5% and i actually don't even think any bank has negative savings interest. The banks don't want to have negative rates on savings and likely make up some of their losses through other fees and such. And the banks are doing quite well at the moment.

Sweden just dropped interest rates again today.From -0.35 to -0.5.
This is complete insanity.They're just about done, everything they are doing is unsustainable.

Gold up USD 50 in the past 12 hours.Some serious shit brewing in the markets.

Puppyroach said: Nettles said: Negative interest rates themself are irresponsible no? Why punish savers and retirees who must now pay the banks in order to keep their money in there? These ultra low and negative rates are what caused the big housing bubble, it's the same here in Australia. There is no escaping this economic mess without severe recession/depression.Endgame is hyperinflation.We will see how strong your society is. That's not how it automatically works. The purpose of the national negative interest (called Repo interest) is to kick start the economy by growing consumption. It is right that it might create a housing bubble, but this is offset by the banks now demanding that you cover atleast 15-20% of the price for a new house yourself in order to even be eligible to buy. The government is also looking into forcing those who take loans to start paying them off from the start. The savings interest is not automatically on the negative side just because Repo interest is. At the moment I think the average interest at the banks is something like 0.5% and i actually don't even think any bank has negative savings interest. The banks don't want to have negative rates on savings and likely make up some of their losses through other fees and such. And the banks are doing quite well at the moment.

The banks want negative interest on savings but cannot do it without a cashless society.With cash still in the system you can withdraw and thus avoid negative rates.Sweden is ver far along with this cashless society model, they may be the first to bring negative rates on savings in.

Here's a Bank of England economist calling for both negative interest rates and a ban on cash : http://www.telegraph.co.uk/finance/bank-of-england/11874061/Negative-interest-rates-could-be-necessary-to-protect-UK-economy-says-Bank-of-England-chief-economist.html

Heaps more articles like this out there let me know if you want me to link more.

 

 

m0ney said: IIIIITHE1IIIII said: 1. A better question would be where this myth comes from. People don't care much for Swedish culture, true, but they don't hate themselves. But why did they allow their country taken over by insane politicians then? I can't see it happening in any other country. Germany is already done, lets not count it. In any other country, immigration policy like that would mean instant revolution. I can't get my head around it, how can civilians be attacked and raped on daily basis yet there's no uprisings. I know that nordics are less collective but there must be point where a nation takes control to defend itself but it seems that point is far exceeded, like there should be mass protests at least. When I read that refugee centers are being burned down by nationalists I calmed down a bit but then I read that there are 55 or so areas in Sweden now that are controlled by muslims where police does not enter anymore because they get attacked instantly. If it is true, are there any plans? That's why I asked about army, it's like invaders are right under their nose but nothing is happening. I can say about my little country Latvia that nobody wants those 'refugees' here. There were some public persons on mass media speaking about how latvian WW2 refugees were taken in by other countries and how we should do the same now but after new year cologne none of them dare to open their mouths. Anytime there is an article about this topic 99% of comments are very negative and many less bright people express direct threats on immigrant lives. Does that happen in Sweden?

 

I don't think the majority of educated people are foolish enough to believe in fascism and nationalism. Rather enlightenment and the sciences are what is valued, and history has proven that liberal thoughts make for vastly better societies. It's unfortunate that Europe still has its share of cowardly nationalist bumpkins who still want to be afraid of differences while living in their inbred homogenous villages.

Nettles said: Sweden just dropped interest rates again today.From -0.35 to -0.5. This is complete insanity.They're just about done, everything they are doing is unsustainable. Gold up USD 50 in the past 12 hours.Some serious shit brewing in the markets.

You are being very dramatic, and it´s competely unnecessary. Negative interest rates aren´t by defintion bad, a government need to be responsible with how they handle the national economy and don´t inflate the currency when the rest of the world is so unstable.

It was expected that they would drop the interest since the stock market globally has been volatile and since the national banks plan is to keep the interest extremely low for atleast a couple of more years.

Jumpin said: I don't think the majority of educated people are foolish enough to believe in fascism and nationalism. Rather enlightenment and the sciences are what is valued, and history has proven that liberal thoughts make for vastly better societies. It's unfortunate that Europe still has its share of cowardly nationalist bumpkins who still want to be afraid of differences while living in their inbred homogenous villages.

I can't speak for all of Europe, but nationalist sympathizers are actually more common in areas with higher concentrations of immigrants here in Sweden. Because people around those areas get to experience all the issues that follows first-hand, while the people living in "inbred homogenous villages" tend to vote left or pro immigration.

It's easy to dismiss these people as bigots when you don't have to deal with the things that they have to go through daily, yourself. It's also easy to dismiss them as uneducated just because they don't have top-of-the-line professions and can't afford to move into safe, homogenous villages.

With that said, I'm in no way trying to defend m0ney here. He has proved himself to be one of few actual bigots several times over in this thread.

Puppyroach said: Nettles said: Sweden just dropped interest rates again today.From -0.35 to -0.5. This is complete insanity.They're just about done, everything they are doing is unsustainable. Gold up USD 50 in the past 12 hours.Some serious shit brewing in the markets. You are being very dramatic, and it´s competely unnecessary. Negative interest rates aren´t by defintion bad, a government need to be responsible with how they handle the national economy and don´t inflate the currency when the rest of the world is so unstable. It was expected that they would drop the interest since the stock market globally has been volatile and since the national banks plan is to keep the interest extremely low for atleast a couple of more years.

Very low and especially negative rates are bad, because they create huge asset bubbles.Want proof? - Swedish house prices increased 18% last year.We've already gone through this and i really can't be bothered arguing with someone who can't see how insane current Swedish monetary and economic policy is.You can't understand the most basic concepts.

IIIIITHE1IIIII said: With that said, I'm in no way trying to defend m0ney here. He has proved himself to be one of few actual bigots several times over in this thread.

Only thanks to bigots Europe will survive and you will be thanking them.