General World News

HSBC: Sweden is 'skating on thin ice' and its housing bubble 'is not sustainable'


The economic situation in Sweden right now is extraordinary, and a new note to investors from HSBC says that Swedish housing may be in a bubble that “is not sustainable.” Here’s the macro picture:

Low interest rates fuel bubbles by making money cheap to borrow. All that extra money drives up prices. Normally, a central bank would respond to rocketing house prices and 4% growth by raising rates, in order to calm the market down. But the Swedish Riksbank has read more >>>

Source : BusinessInsider.Com