Wednesday 4 June 2008

Credit Crisis? What credit crisis...

"Housing loans on the increase in April Loans

In April 2008, households withdrew new housing loans to a total value of EUR 2.1 billion compared to EUR 1.6 billion in March 2008. The average interest rate on new housing loans was 4.88% in April, up 0.03 percentage point on March.

Outstanding MFI mortgages to households amounted to EUR 64.2 billion at the end of March, which represents an annual growth rate of 5.02%. The annual growth rate of mortgages was 12.0% in April, up from 11.9% in March.

In April, the total stock of MFI corporate loans amounted to EUR 52.5 billion, with the interest rising to 5.22%, up from 5.17% in March. The annual growth rate of MFI loans to corporations has been clearly on the increase in recent months, amounting to 18.2% in April compared to 16.7% in March and 13.5% before that
."

Banks in Finland have opened the Money tap, no wonder why price are still either up or stable as opposed to many other country in Europe. The Finnish bankers are again overconfident, a confidence that cost them their shirt in 1990.

Are we going to see a repeat of the 90's slump? yes if the Finnish bankers thinks they are smarter than the rest or if simply they want to push household to the limit until they collpase...

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