Quote:
Originally Posted by thommy
you canīt compare holland to the united states.
the dept to GDP in holland in 64 % in USA it is 107 %. the dutch economy is healthy and the real etsate market in such a small country canīt be compared because of the very limited land area and emplyment rate is at 76,2 % compared to 60 % in the USA.
so donīt worry about this. the problem we have right now is the same we had in 2007/2008 and this problem is GLOBAL.
I am not sure how familiar you are with the problems of 2008 and why the world was ending up in a disaster. but if you go really deeper in that you would probably see that the same thing happens again - just worse than in 2008 because the amount of money in circulation has doubled up since than. there is more money in the flow as credits need and this leads to the fact that it will be lend to people that canīt pay it back.
at the end of the day the normal taxpayer have to pay this bill.
do you really think that you know the amount of money all western countries paid to the banks? I doubt it, because that was a fraction of that what they paid to the AIG (biggest US credit insurance company). their undercoverage alone amounted to more than 1 trillion of which the american state only paid 60 billion. where do you think the other money came from? if you hadn't saved this company, more european and worldwide banks would have gone under.
interest rates are only possible if someone lends money and pays it back with interest rates. also here supply and demand count. but if the supply is bigger than the demand, risk markets are the only way. this may all look nice at the moment but can not go well in the long run.
this is exactly what is happening with the US economy where no bank turns off the credit tap, just like the dutch banks wisely do. there more and more credit is being pumped into the market.
what they do is a variant of friedmanīs helicopter money theory. the only difference is that the money is not given away but given to people who can never pay it back. banks made an insurance for it and the capital of these insurers comes from smaller savers, pension fonts and municipalities. so if this insurance can not pay whoīs money is lost?
to understand economy and effects you need to know much more as just the headlines of some scandal magazines and internet blogs from dilettantes.
because this is such a complicated issue it is so easy to fool people with bullshit theories.
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I know what is happening and will happen. What goes up will go down. And has many to do with the government. They also helped most of the banks and 1 went down. Also a trick cause the government didn't like that bank, they saved all, except one (and people with over 100.000 euro there lost it, while paying tax for the other banks...).
Europe is doing it again with putting billions in the market. That will come to an end.
With the housing market in Holland it is simple; we have not enough houses since WW2. Since WW2 people have problems finding houses and the governmunt fucks up solving it, and now it is getting to worse. Try as dutch man/woman to find a rental house in Amsterdam... they go all to the refugees. And there is already a waiting time for 10+ years...
Dutch banks are only bad for starters on the housing market. And that is mainly because the government and banks suck. In Holland you can't get a mortgage (or it is hard) when you don't have a work contract at a company. If you only have 1 or 2 year contract, no mortgage. And the economy changed, most people switch jobs more and don't have a life time contract with a company. If you have your own company it is even worse... A lot of things that have influence on the housing market and a government wasn't able to solve it (build much much more houses). But when governments sell ground for housing, they also want the jackpot (and than complain that houses are so expensive).
We agree, we will go down again.