"The collapse of new building alone would plunge the economy into the red next year," said Tarmo Pipatti, the chief executive of RT.
The Finnish Construction Workers' Union warned that the worst-case scenario was an extra 40,000 jobless builders next year.
Both groups urged the government to take action to support housing and public-sector construction as well as repairs."
I think the Government should bail out the construction sector, while on the way bail out the auto sector, and in the same line bail out the forest industry etc... etc...
How about buying a printing press, so that the government could print as much money as it wants...oops, forgot the ECB won't allow it (The ECBaby won't share its own...the ECB is a big child you know, they don't like to lend their toys (tools?)...)
So what else can they do, borrow even more? it's all fine if we have a mild recession and quick recovery but how about a very slow recovery that will push the state to take more and more debt...that's the recipe for higher tax in one form or another (for example raising alcohol price (another +10%), on the same line: oil price (another +10%), kinden garden (another +30%)..how about property price? I thought Finland has the lowest in Europe, about time to change that??).
Remember, We have had a begnin 25 years cycle that started in 1982, that saw debt being build in a very rigourus and constructive (destructive?) way...today it's imploding in all directions: auto sector, building sector, forest sector, well any sector that was pushed artificially by higher and higher debt...the system is falling under its own weight and no one seem able to rescue it, even our Young ,FT rewarded, finance minister, Mr karvinen oops sorry, Mr Katainen.
So what next? just waiting that the system to deleverage, from consumer to banks. It will take surely time. The mission of finance ministers and policy makers is to make it happen in the most orderly way, without creating social unrest or government collapse. Challenging time but once we get through that we will certainly have a very clean system ready to kick again...let's just hope that it will take 5 years? ...10 years? naaahh, 20 years?..you must be kidding?? "i have a wife and children to feed, can't wait so long"...ok...let me check my crystal snow ball...it says...