Published 19 March 2023 at 12.28
Economy. On December 8, Alexander Norén, economic expert at SVT, explained in a column how smart he was to borrow a lot of money and not miss the train on the housing market. Now it sounds different.
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In the column last fall, Norén admitted that those who warned of a housing bubble “were certainly right”, but the message was that they missed so many good years of low interest rates that they should have borrowed the iron instead anyway.
” They were forced to put their lives on hold and continue to live third-hand for another decade in order to time the market,” Norén wrote, and apparently meant that it is a basic human need to live in Stockholm.
Now however, it sounds different, Expressen reports in its paid edition.
– The entire Swedish economy is unfortunately pumped up on low interest rates. So far, we are not at the point where we citizens with housing loans cannot pay, but there is a pain threshold even for us. We are all mortgage cod, and the outside world and the financial markets outside Sweden know that, notes a much less cheerful Norén.
He notes that high interest rates in the world would lead to Sweden falling first, because the Swedish public has large debts compared to other countries.
The Swedish banks claim emphatically that they have no problems, but it is a statement that may prove to have to be taken with a pinch of salt.
– A bank will always say that it has no problems, even until the day and the second when it collapses, says Norén.
Year 2009, i.e. five years after the big interest rate cut in 2004 and shortly after housing price crash in 2008, Alexander Norén wrote the book “Hög på hus” where he stated that Sweden has not experienced any correction in the housing market and that the country has now become dependent on mortgages. For the Swede, “the residential career has become more important than the professional career” to become rich, Norén noted in the book.