Tuesday, 6 October 2009

Nordea ... Lesson "Not" Learned

So Nordea is fighting deflation with its own tools - rather limited though.

Credit is faltering and consumption is sluggish...so how do deal with that? well use the bad behaviour that was the cause root of the current crisis - as if the crisis happen for nothing and give you the sense that institutions, banks do not learn a nickel out of that.

Let me be more clear...and point to what make Nordea, not an example to follow...

Make use of your home equity

"Would you like to utilise the assets tied to your home to realise your plans?

Does your home need improvement or would you like to buy a summer cottage? Is the block of flats you live in going to have pipe renovation or other repairs? Are you interested in investing? Would you like to give your children or grandchildren a nest egg to get them started in life?
Benefits of HomeFlex

* The interest you pay on your loan equals the interest the bank pays on the deposit on your account.
* You can deduct the loan interest in taxation. Read more
* You can use the loan in the way you want and the account is used as any ordinary bank account.
* The loan period is ten years. During this time you don't have to amortise your loan - you just pay the interest. After ten years we will agree with you on how to continue."

Read again the first and last sentence :
- Would you like to utilise the assets tied to your home to realise your plans
- The loan period is ten years. During this time ... you just pay the interest

I thought that this crisis was all about reforming a failing financial regulatory system...looks like nothing happen. This is the reciped that put the American financial system on it knee that ultimately had to be rescued with public fund.

Today Nordea has been hit by the "I-Dont-Get-It*I'M-Not-Listening" syndrome...and yet, regulators are still fighting the last battle , most probably analysing what went wrong and allowing in real time such development...

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Anonymous said...

Finland's OP-Pohjola warns of housing bubble

6.10.2009 at 13:32

The estate agent arm of Finnish bancassurer OP-Pohjola said Tuesday that the government should stimulate owner-occupied housing construction.

"There is a danger of a bubble if demand remains strong with not enough new dwellings to sell," said Kenneth Sandberg of OP-Kiinteistökeskus.

He added that government stimuli had been focused on the construction of rental accommodation, with low interest and inflation rates giving a boost to the owner-occupied market.

OP-Kiinteistökeskus said it had logged about 4,350 transactions in the July-to-September period, compared with some 3,800 in the year-ago period.


© Copyright STT 2009


- - - - - - - - -
The above almost blew my mind out.... Maybe Nordea is not the only bank lending more than they should.

Although the Finnish FSA says "Finnish financial sector would cope with a severe recession"
Link: http://www.finanssivalvonta.fi/en/publications/Press_releases/pages/14_2009.aspx


Anonymous said...

Oh, come on ! :-)) They DO learn. What they have learned is that they can make even bigger and easier money by messing up the economy.

A bank or the similar institution is merely a vehicle that attracts the tax payers, normal customers, and gamblers with its very, very beauty door and then, lead them into the Wild West to be robbed and abused legally there so that the bankers running the banks can make a huge amount of money. The bankers achieve their long-term goal usually through the following steps:

(a) rob everyone and mess up the economy --> (b) cause great fear in the society and then kidnap the economy --> (c) "push" the central bank to inject them a lot of money for free ---> (d) and also (a) rob an extra huge amount of money from the free money again…

Then, what is the role of the so-call central banks. Some of the so-called central banks are basically privately owned, e.g., FED. Well, they can be part of the robbing banks. You never know.

Right now, the bankers have nearly successfully created the fear (the inflation expectation) to the public. I see another cycle of even bigger destruction (or opportunity for the bankers) is coming.

HousingFinland said...

OP-Pohjola, are they still around...I though they completely lost their credibility after last autumn collapse...thanks to the tax payer and generous stimulus around the world...there are still around.

Still around to spread nonsense messages. Let's analyse their C.R.A.P (Continuous, Recurring, Awful Press release).

So the demand is strong yet the supply is weak. It's like saying that it's rainning but it's humid or like saying that Finnish politicians are not corrupt. Two message in one sentence that contradict itself.

If the demand was so strong, the offer will materialize...Finnish contruction builders and any other nordic one are desperate to build in order to maintain fatty profit...but it's not the case since future incvestment (through the permit buiding statistics) shows clearly a bleak outlook for construction.

If demand was so strong, you won't have so many new buildings blocks that are still waiting for a buyer.

I think the question should be : Would OP Pohjola is a bubble in itself, unsustainable business model and one of too many banks to compete in a shrinking market? we shall see in about 4 years ...

HousingFinland said...

"Right now, the bankers have nearly successfully created the fear (the inflation expectation) to the public. I see another cycle of even bigger destruction (or opportunity for the bankers) is coming."

I totally agree... without any dout we are only at the beginning of the crisis. The amount of stimulus and tax payer money has bearly shifted the problem by few months.

And it clearly show that a bank like Nordea is completely irresponsible and has no sense of ethics. They clearly want to trap few consumers in a debt trap before the collapse of the housing, and the relapse of the stock market...

legal note: refer to the main article legal note.