{"id":5010,"date":"2015-01-29T07:05:26","date_gmt":"2015-01-29T12:05:26","guid":{"rendered":"http:\/\/olduvai.ca\/?p=5010"},"modified":"2015-01-29T07:05:26","modified_gmt":"2015-01-29T12:05:26","slug":"norway-regulator-fears-housing-bubble-isnt-sustainable","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=5010","title":{"rendered":"Norway Regulator Fears Housing Bubble “Isn’t Sustainable”"},"content":{"rendered":"

Norway Regulator Fears Housing Bubble “Isn’t Sustainable”<\/a><\/h3>\n

Amid the collapse in crude oil prices, the Norwegian central bank cut rates in December (after 1000 days on hold) and is likely to cut again as economic growth stalls. However, the country’s financial regulator iswarning falling interest rates risk pushing the Norwegian housing market beyond its breaking point into a “self-augmenting spiral.”<\/strong>\u00a0With prices up 8.1% YoY, and up 85% nationwide in the last decade, even Robert Shiller warned of Norway’s housing bubble in 2012 – and since then household debt (and home prices) have surged. As Bloomberg reports, Morten Baltzersen, head of Norway\u2019s Financial Supervisory Authority stressed\u00a0“continued rapid growth in debt and house prices isn\u2019t sustainable.”\u00a0<\/em><\/strong>Unintended consequences?<\/em><\/p>\n

As Bloomberg reports,<\/a>\u00a0a\u00a0combination of plunging oil prices and falling interest rates risks pushing Norway\u2019s housing market beyond its breaking point, the financial regulator said<\/strong>.<\/p>\n

Norway\u2019s housing market, which Nobel laureate\u00a0Robert Shiller all the way back in 2012 said was in a bubble,<\/strong>\u00a0has been inflated amid an oil boom that has driven wealth creation and kept unemployment below 4 percent.<\/p>\n

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 <\/p>\n

Norwegians have more debt than ever before, owing their creditors about twice their disposable incomes, a level that Olsen and FSA\u2019s Baltzersen have said is unsustainable.<\/p>\n

And it’s about to get worse…<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Norway Regulator Fears Housing Bubble “Isn’t Sustainable” Amid the collapse in crude oil prices, the Norwegian central bank cut rates in December (after 1000 days on hold) and is likely to cut again as economic growth stalls. However, the country’s financial regulator iswarning falling interest rates risk pushing the Norwegian housing market beyond its breaking […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"aside","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[175,195,406,2340,1241,2902],"class_list":["post-5010","post","type-post","status-publish","format-aside","hentry","category-economics","tag-credit","tag-debt","tag-housing-bubble","tag-housing-market","tag-norway","tag-real-estate-bubble","post_format-post-format-aside"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/5010","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5010"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/5010\/revisions"}],"predecessor-version":[{"id":5011,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/5010\/revisions\/5011"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5010"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5010"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5010"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}