The European Union's statistics office Eurostat on Thursday estimated that the economy of the 15 countries sharing the euro contracted 0.2 percent against the first quarter and grew 1.5 percent year-on- year."
When the U.S. Sneeze, Europe catch a cold... that saying is still true.
What about when the U.S. gets pneumonia, Europe catch a...? let's cross the fingers - hand and feet-
Europe is technically about to enter a recession if the contraction is confirmed next quarter, which most probably will happen. Remember that the ECB through its president warned about a very difficult 3rd quarter.
When Europe was in a recession in 2001-2002, house prices started to fall until the ECB put an end to it by lowering the interest rates to an historical low. It not only put a floor but propulsed house price to the sky, thus creating a bubble that some generation had never witnessed.
The bubble is about to deflate, 2009 will see a big drop in price between 10-15% followed by the same amount in 2010 and 2011.
Would they stabilize? it's all about the ratio population and house availability and affordability.
At the end it's all about how attractive Finland is... Ask the beggars:
"Finland attracts fewer beggars than expected -social services"
Only around one hundred beggars arrived in Helsinki this summer from abroad, the Helsinki City Social Services Department told the Finnish News Agency (STT) on Thursday.
"The Roma say they are looking for work. The group is very motley, what they hold in common is bad education and lack of language skills," said Jarmo Räihä from the Social Services Department"
Yes Jarmo, next time beggars will have a university degree and speak 2 or 3 foreign languages. Is that guy dumb? i guess they won't be beggars if they were educated as I think Romania being part of Europe will have as much chance to be wealthy as Finland thus attracting foreigners...the Fact Finnish(?) Nokia open a Factory there...
Frankly if I was a beggar, I would choose Costa del Sol or the cote d'azur...why would one choose a country where summer is similar to Autumn ? hummm after a thought maybe beggars don't care about sun but more about money..not sure if Finnish are the kind of people that give money to beggars with all the discrimination I read about beggars in the past 2 years in newspapers....