Tuesday, 26 August 2008
A Controversy or How To Value Housing?
07.08.2008 : "Georgia's President Mikhail Saakashvili has accused Russia of carrying out an air raid on Georgian territory, saying Moscow was trying to provoke panic ...We are waiting for an official explanation from Russia"
09.08.2008 : "Russian tanks have entered Georgia's breakaway region of South Ossetia"
12.08.2008 : "Bush condemns Russian 'invasion' of Georgia "
22.08.2008 : Meanwhile , "Friday's US airstrike in west Afghanistan 'killed 60 children', United Nations says."
13.08.2008 : "Georgia and Russia agree on truce. French President Nicolas Sarkozy has agreed an outline plan with Russia and Georgia to try to resolve their crisis"
20.08.2008 : "Russia has rejected a draft UN Security Council resolution on Georgia, saying it contradicted the terms of last week's ceasefire deal"
24.08.2008 : "A US warship has arrived in the Georgian port of Batumi carrying the first delivery of aid supplies by sea."
26.08.2008 : "Moscow Regions recognises the independence of Georgia's breakaway regions of South Ossetia and Abkhazia."
27.08.2008 : "Russian President Dmitry Medvedev meets his Chinese counterpart Hu Jintao today as he seeks to muster support from Asian allies for Russia's recognition of Georgia's breakaway regions."
27.08.2008 : "British Foreign Secretary David Miliband is visiting Ukraine in an effort to build a "coalition against Russian aggression"."
I suppose Russia could not have choosen a better time. After all the U.S. and its allies are overextended in Iraq and Afghanistan. Their financial system on the brink of collapse while Iran rearming itself make the world less safe than it was yesterday.
Coming back to earth, The Russian stock market has collapsed in the past 3 month, its currency the Rubble is weakening. The Baltic Economies are about to witness a "hard landing". So where could it leave the Finnish Export and economy? I guess toward a sharp downturn. I'm not even talking about the Finnish Internal consumption as up to now it mainly driven by credit and debt ("the Minsky moment"). One has to pay back at some point...
What would then be a value of "Housing" if event degenerates or bring further down the economic slump?
One have to bear in mind that it is very slow process, at anytime the direction could rapidly change in both direction, good or worse.
Disclaimer: All elements, statements or forecasts put forward in this article are purely fictious and are based mainly on cartoon type reading and non-credible newspaper like HS. If you feel offended by such reading, then don't read further this blog, go to the pub and have a lager. If you enjoy such article, then it's about time to see a psychologist as those idea are not real and should not be...well that was my disclaimer.