On Sweden’s household debt problem

Sweden has been one of the countries to have best weathered the economic crisis. Despite a hiccup in its domestic economy and the extra deflationary impulse from souring loans to the Baltics in 2009, the Swedish economy has been remarkably resilient. Yet, the economy has begun to falter, in large part because of its connectedness to the euro zone. The Swedish central bank, the Riksbank, has cut interest rates to 1% as the economy slows. But it is housing inflation and the related high levels of household debt which are the true Achilles heel for Sweden.
Over the past few days, I have highlighted a number of posts on the Swedish economy in the links and promised to say a bit more about Sweden in a separate post. Fred Sheehan beat me to it with the last post here at Credit Writedowns on Swed...

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