"Helsinki’s housing market did not suffer greatly in the wake of the 2008 global economic crisis.Interesting to see the confederation of Finnish real estate agent doing marketing on the New York page, sign of despair, sign of trying to support a housing market by trying to bring "dollar collapsing purchasing power" investors.
“First, there was no price bubble prior to 2008,” said Jukka Malila, the managing director and chief executive of the Central Federation of Finnish Real Estate Agencies.
“Secondly, Finnish people were initially frightened by collapsing banks abroad, but they realized they were not affected, as Finland is quite isolated, and went on living their lives as usual. So consumer confidence is high.”
Mr. Malila attributes Finland’s relatively levelheaded response to the downturn to the lessons learned in the early 1990s, when the collapse of its neighbor, the former Soviet Union, sent Finland’s economy into a steep recession.", NYTimes, May 2011
- Nokia is collapsing while at the time it was emerging as a global player
- The European Monetary Union is questioned while back then it was a savior (in 1996, Finland join ERM, and in 1999 the EMU)
- Emerging market were powering off, China and India economy exponential growth started...today both are struggling with slowing economy, high inflation and property price bubble.
- The active population is shrinking at record level due to historically high growth level of retiree population
In all cases, I wanted to highlight the timing of such article relative to the "consumer confidence" and the perfect timing of its release. It highlights somehow a knowledge of the deteriorating situation back then (in fact, we were in the mist of the Euro crisis, and a worsening of the financial crisis that started in 2008).
Now, this is what happen afterward....in December 2011, the Finnish consumer confidence has collapsed, approching its worst level made at the beginning of the financial crisis, and even worse than the IT Bubble of 2002. Here is the chart: