"During the course of 2007 some 194,000 bad debt matters were referred to district courts - that's 40,000 or 20 percent more than the previous year. "
"A report in the Savon Sanomat newspaper quotes the Justice Ministry as saying that the growth in bad debts is due in large part to borrowers defaulting on instant loans."
"Heikki Liljeroos, a Government Counsellor with the Justice Ministry says the dramatic growth in unpaid debts comes as little surprise to officials."
We all know that debt has been accumulated in an unreasonnable way for many households, allowing in the way to inflate various asset classes. Can that continue? NO. I don't think so.
Imagine, those people are defaulting at a time when the economy is booming (or has been) and at a time when the job rate is an historical low. So what would happen if the economy reverse gear and the job rate inch up?
After all the economy won't boom if you stop giving cheap credit, that's how the world economy has been engineered in the past 10 years...