Mikael Palmstedt

Following my somewhat chaotic and unclear posts about rents etc, at lundxy I found Jonathan Jarvis cute illustration of the credit crisis.

*Funny how the “non reponsible family” is illustrated haha*

Pretty much every Swedish person I speak to still think you are strange if you don’t default on the fact that buying a house or apartment is the safest thing ever and if you rent an apartment you are pretty much just stupid. That’s the perfect mindset for getting into trouble in an economy with dangerously free fiat money (if the reporate will go to 0% as SEB not very objectively projects).

The question is, can the same thing really happen in Sweden … I don’t think on such a large scale because the Swedish labour union for builders (who acts pretty much the same way as an organized crime syndicate in keeping good foreign builders out of Sweden) is keeping minimum salaries for bad Swedish builders extremely high. That in combination with the Swedish state telling everybody that doing manual work is ugly and everyone who can should get a whitecollar job has made the few top builders, painters, plummers etc in Sweden very rich (deservedly so) and sought after. Which means more housing can’t be created quickly just because there’s a demand for it.

Prices on houses and apartments can go up again of course, but the banks will still choose the best ppl to borrow money to (just use the video above to separate the good from the bad ones) and even if the borrowers might loose big (or not) the large mass will have a larger chance of paying back their loans every month.

PS. Crisis of credit now available as a t-shirt