The housing market falters while the banking crisis continues

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Homeowners still find themselves caught between Scylla and Charybdis, with a sinking housing market on one side and unstable global banks threatening to collapse on the other.

In general, experts believe that both situations will improve and that we are most likely not headed for a catastrophe.

However, global banks are still precariously tied to each other’s fortunes, which means that here in Denmark we are forever at the mercy of macro fluctuations in the worldwide economy.

“The reason why other banks – also in Denmark – are affected is that one problem in one bank spreads quickly in the financial sector,” says Otto Friedrichsen, partner and equity manager at Formuepleje.

“Trust is a key parameter in the financial system in relation to business and transactions between banks.”

Source: The Nordic Page




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