Monday, 22 August 2011

"The Thin" Capability, Maturity Integration ....

"Moody’s criticises Finland’s demands for Greek guarantees

US credit rating agency Moody’s told on Monday that the bilateral guarantee agreement between Finland and Greece could lower the Greek credit rating, and the credit ratings of other struggling eurozone countries.

The Finnish guarantee demands could also delay the second Greek bailout package and so lead to failure to pay, Moody’s added.

The agency expects the euro countries to reject the agreement between Finland and Greece."

I am actually shocked by the initiative launched by the finance minstry regarding the Greek guaranty. Not only it has been a showcase, where Finland lacked complete understanding and maturity on the Political european stage, but also endanger a fragile cohesion that is currently being tested within all the european countries.

I suppose it was driven by vanity and for domestic political gain- maybe even to reduce the popularity and the electorate size of the "the thin" party.


Andrew said...

I am sure France and Germany will learn the error of their ways if they have to pay for their own mistakes.

What actually has it got to do with Finnish taxpayers?

How come the bankers are insisting these poor countries have to fully pay back these monumentally stupid loans?

If we are a community why are we not helping these poor countries with some amount of debt forgiveness?

The answer is the disgusting behaviour of the banks who are insolvent.

Why the hell should ordinary people bail out the elite?

Let them burn and to hell with it.

Anonymous said...

Soni should loose some weight if he is to lead "the Thin" Party :)

Back to housing: will the new (proposed) budget help drive down house prices?
(see: )

"Harder times for housing loan holders

Finance Ministry budget plans also mean tougher times for those with housing loans. Next year, the state will reduce the tax deductable level of housing loan interest to 85 percent.

Further cuts in housing loan interest tax allowances will be made also in the following two years. The cut will give state coffers an extra 85 million euros in annual income. "

But against this the eurobor rates have fallen a bit after months of slow climbing.


HousingFinland said...


We should also look long term. Currently Finland does not have problem. Who knows tomorrow?

For the best or the worse. What if Greece was Finland? would you let Finland desagregate? you know it will if the situation was comparable. At least you will see an population outflow, a shrinking population with all the issues that comes with it in particular retirement - not even talking about housing which would be worthless.

Now I was talking about a community helping a country without looking at the cause.

Indeed, what the bankers have been doing, how they have been rescued, how the monetary policy is being conducted is outrageous. The worst is that it is based on fear, and each time there are (planned?) dislocation, they take the opportunity to engage in action that are only putting the burden on the citizen (i.e debt accumulation)

HousingFinland said...

Hi "Island Crow", nice to hear you again.

I think so far the issue is that credit has been flowing at alrming level for housing purchase. Bank have been and are still lending huge amount of money, at variable rates to any living creature while at the same time, the state guaranty a good chunk of it allowing household to purchase without much deposits.

On top of that, you have widespread technical work around made by construction builder/housing entities that play the role of the bank providing a third or 2/3 of the loan . Adding to that that currently land is more and more rented.

An example:

Hintatiedot ja muut kustannukset
Velaton myyntihinta: 371 750,00 €
Myyntihinta: 221 000,00 €
Neliöhinta: 3 699,00 € / m2
Vuokratontin 69 847,50 €

The real price is really 371 750 € + 69 847,50 € = 441 597 €

HOWEVER you only have to go to the bank for getting a loan of 221 000€ which is 50% of the actual price. And I suppose this 221 000€ is the one that is regulated by the unfamous Finnish regulators (that blindly close their eyes on that).

Andrew said...


You dont get it. It is not Greece that distingrates if it goes back to its own currency. Greece would just default and start again. Only if Europe bombed the hell out of Greece would it change for Greece. Everybody knows Greece will default. So the problem is not a greek problem any more.
The foundation for the European Union was that each country would be responsible for its own debts.
Why should Finland be responsible for the debts of France and Germany? Greece will probably go back to military dictatorship and probably remain in the Euro. No doubt the banks are already trying to find a suitable candidate.

HousingFinland said...


Maybe Greece is using Finland (or vice-versa) to make the default inevitable and remove the greek tragedy. Maybe a Rehn lead plan :)

I'm wondering of the consequence of such event. Would that mean suddenly a country could default and automatically interest rates will go higher everywhere else within the EMU? or the reverse as the cost of bailing out disappear...

Andrew said...

A solution can only come if stupid lending decisions are viewed in their correct light rather than all blame being placed on the stupid borrower offered the cheap finance. Rich countries and particularly the super rich elite need to take some responsibility and recognise they are going to be poorer instead of just grabbing more and more power. Society is going to break down otherwise.

Anonymous said...

The point is that a large chunk of the middle class have enough savings and overvalue on their houses to justify the current pricelevels.

That is not to say that it is getting more and more difficult to buy your first home. A lot of first buyers are also helped by their parents to meet market prices.

Fact of the matter is that there is no better place in people's minds than to invest your money in your home, especially during times of economic hardship. Still a much better investment and safer place than stocks or savings to put your money in. At least you can live in that investment you make in your home.