Housing Slump, What Could Trigger It?..The Baltics

The Baltic from overheating to Hard landing

Latvia `Hard Landing' May Cause Baltic, Balkan Economic Tremors

The fastest-growing economy in the European Union is most at risk of a "hard landing'' among 15 emerging-market nations, according to Standard & Poor's. Analysts at Goldman Sachs Group Inc. predict "the adjustment is likely to be painful and to start soon.''

The impact threatens to extend beyond the Baltic region at a time when global markets are reeling from a credit collapse.

"Any turbulence in the Baltic countries would likely have a contagion effect on other emerging-market economies that rely on debt financing,'' according to Goldman analysts.

Finland highly coupled with the Baltic, Domino effect?

"Finland's economy is more dependent on the Baltic Sea region than Denmark's and Sweden's, according to a study made public Monday."

"In comparison to the other Nordic countries, foreign investments to and from Finland, in particular, have a more definite emphasis on the Baltic Sea states. As the economic focus of the Baltic Sea region is shifting further east, Finland's economic contacts in the area are estimated to strengthen even more," the Finnish government said

The housing market is highly sensitive to economic downturn. Could this be the trigger? or would it come from Spain, UK or China?