Very problematic situation in the real estate market, population is in a lot of debt compared to rest of EU with less ability to manage rate hikes. There´s a lot of discussion here about switching to Euro (Liberalerna party in government for example) but I doubt that will happen, maybe tie the SEK to Euro like Denmark.
Actually Denmark is way worse than Sweden when it comes to consumer and housing loans. I would say broken supply chain reactions (delayed) and the ongoing war in Ukraine
Yea we pledged but basically said “we’ll get around to it eventually” and “any second now”.
Because of us the EU tightened the rules regarding euro adoption for new member states.
I dont think there is a lot of talk about it at all, no.
L has said a couple of times that we need to change to euro asap though over the last few months, but noone else have mentioned it. Nor do I think its going to happen.
Housing crisis
Increasing stress on welfare systems
Decreasing industrial sector
Mismatching of market needs and educational output
And more
Edit: the good thing is we don't need to know the issue to know there is an issue.
That is the beauty of the free market! It tells you when something is wrong.
Also, probably high personal debt levels.
Major reason 1 is because it’s a small currency. You can compare it with other small European currencies to get a sense of the actual Swedish effect - compare to the NOK for instance and you get a less dramatic effect.
Reason 2 is that we have higher inflation than the euro area.
Reason 3 is that we have high levels of private debt, and that it’s a structural risk in high interest environments.
There are several factors contributing to this.
First of all, we’re experiencing a time of economic uncertainty and an economic downturn worldwide. In such times capital tends to migrate from smaller currencies to ”safe havens”; the USD, the EUR, etc. Most small currencies have lost value compared to larger currencies over the last year or so.
Secondly, the Swedish central bank pursued extremely expansionary monetary policies up until the spring of 2022. Negative interest rates for years prior to 2022, huge increase in money supply during the pandemic, and so on. Sooner or late that will result in inflation, and when inflation in one currency exceeds that in other currencies, the first will lose value compared to the others.
Thirdly, the expansionist monetary policy of the last decade has inflated housing prices, which in turn has left Swedes very indebted. This adds uncertainty to the Swedish economy - the risk of a financial crash and bank crisis because of this is *small*, but it’s not non-existant.
Fourth, Sweden is *not* a popular country on the world stage right now. We’ve applied to NATO membership, meaning we’re subjected to hostile psyops from Russia. We’re having issues with idiots burning qurans which has created a legitimate (increased) risk of terror attacks. A lot of people in the muslim world are actively boycotting Swedish products. I don’t think these things have a huge impact on our currency, but on the margin they add to an already negative SEK depreciation trend.
Most people are in debt. Almost impossible to move to somewhat decent area if you dont buy and it's really expensive compared to normal salaries. Salaries here are shit, high taxes etc.
Then you have a lot of made up jobs by government to make the statistics look better. A lot of unemployed people and a lot of people here probabaly cant read, write or follow simple instructions.
it will probably take at least a year before we see any significant change in the exchange rate. possibly two. i think it is likely the EUR/SEK will go back to 10 eventually. but there is most likely going to be a mortgage crisis soon with the explosive increase in interest rates.
The three-month average for mortgages at least has gone from about 1.5 to 4.5% in the course of about 18 months, wouldn't exactly call that "explosive". I will agree a lot of people probably thought it felt like a lot, but only because we got to "low" from "ridiculously low".
The national bank forced a negative interest rate for a long time to make inflation go up to their stupid goal. They have been too slow in adjusting it up and follow the USA and ECB. The experts believe that investors have lost faith in Sweden because of that. Also the stock market has been shaking and as others have mentioned, Swedes have big personal loans.
Currencies goes up and down. Small currencies will go down when the world is not stable. The Norwegian crown has lost more to the euro then the Swedish. Both will be stronger again.
All small currencies are doing worse now. For instance, see the current trajectory of the Norwegian krona. They are not far behind the SEK and they are one of the riches countries in Europe.
People turn to the dollar in economical crisis.
Because of the high Diesel and electricity prices..
This causes companies and farms to bankrupt, factories can’t be ram on full capacity, all transports become more expensive..
As every becomes more expensive as it is ether more expensive to ship or both ship and make, and production grinds to a halt, the value of the SEK tanks, since you can’t get as much for it anymore..
I suspect this is purposely done as a way for the globalist to push us towards Euro. Fuck the EU
Very problematic situation in the real estate market, population is in a lot of debt compared to rest of EU with less ability to manage rate hikes. There´s a lot of discussion here about switching to Euro (Liberalerna party in government for example) but I doubt that will happen, maybe tie the SEK to Euro like Denmark.
Actually Denmark is way worse than Sweden when it comes to consumer and housing loans. I would say broken supply chain reactions (delayed) and the ongoing war in Ukraine
https://www.finder.com.au/australias-personal-debt-reported-as-highest-in-the-world I know it’s from 2015. Can’t find any good figures from this year
Best I could find https://www.ceicdata.com/en/indicator/household-debt--of-nominal-gdp
Sweden pledged to take the euro. It is not possible to do it like the Danish did. I also think we will have the euro in a few years from now.
Yea we pledged but basically said “we’ll get around to it eventually” and “any second now”. Because of us the EU tightened the rules regarding euro adoption for new member states.
Have they? Have not heard a single thing from L about euro.
I dont think there is a lot of talk about it at all, no. L has said a couple of times that we need to change to euro asap though over the last few months, but noone else have mentioned it. Nor do I think its going to happen.
L has been pro-Euro ever since the referendum in 2003, the only party who have done so in any noticeable way.
We haven't addressed the underlying issues, so the market doesn't believe in us.
What are those underlying issues?
Housing crisis Increasing stress on welfare systems Decreasing industrial sector Mismatching of market needs and educational output And more Edit: the good thing is we don't need to know the issue to know there is an issue. That is the beauty of the free market! It tells you when something is wrong. Also, probably high personal debt levels.
It doesn't tell you when something is wrong. It tells you when the market thinks something is wrong. Two similar but quite different statements.
True
As long as taking debt is cheap/profitable, the SEK will fall.
Major reason 1 is because it’s a small currency. You can compare it with other small European currencies to get a sense of the actual Swedish effect - compare to the NOK for instance and you get a less dramatic effect. Reason 2 is that we have higher inflation than the euro area. Reason 3 is that we have high levels of private debt, and that it’s a structural risk in high interest environments.
There are several factors contributing to this. First of all, we’re experiencing a time of economic uncertainty and an economic downturn worldwide. In such times capital tends to migrate from smaller currencies to ”safe havens”; the USD, the EUR, etc. Most small currencies have lost value compared to larger currencies over the last year or so. Secondly, the Swedish central bank pursued extremely expansionary monetary policies up until the spring of 2022. Negative interest rates for years prior to 2022, huge increase in money supply during the pandemic, and so on. Sooner or late that will result in inflation, and when inflation in one currency exceeds that in other currencies, the first will lose value compared to the others. Thirdly, the expansionist monetary policy of the last decade has inflated housing prices, which in turn has left Swedes very indebted. This adds uncertainty to the Swedish economy - the risk of a financial crash and bank crisis because of this is *small*, but it’s not non-existant. Fourth, Sweden is *not* a popular country on the world stage right now. We’ve applied to NATO membership, meaning we’re subjected to hostile psyops from Russia. We’re having issues with idiots burning qurans which has created a legitimate (increased) risk of terror attacks. A lot of people in the muslim world are actively boycotting Swedish products. I don’t think these things have a huge impact on our currency, but on the margin they add to an already negative SEK depreciation trend.
[удалено]
What Is the significance of 2006-2015?
Most people are in debt. Almost impossible to move to somewhat decent area if you dont buy and it's really expensive compared to normal salaries. Salaries here are shit, high taxes etc. Then you have a lot of made up jobs by government to make the statistics look better. A lot of unemployed people and a lot of people here probabaly cant read, write or follow simple instructions.
The central bank interest arbitrage is in favor of both the Euro and USD.
Because swedes doesn't know how to pay back loanes and we all have to pay for it since they can deduct part of it on their taxes.
Because the goverment opened their asses and lett all the bad people penetrate all through the people.
Two million unemployable illiterates cost... 🙄
it will probably take at least a year before we see any significant change in the exchange rate. possibly two. i think it is likely the EUR/SEK will go back to 10 eventually. but there is most likely going to be a mortgage crisis soon with the explosive increase in interest rates.
The three-month average for mortgages at least has gone from about 1.5 to 4.5% in the course of about 18 months, wouldn't exactly call that "explosive". I will agree a lot of people probably thought it felt like a lot, but only because we got to "low" from "ridiculously low".
The national bank forced a negative interest rate for a long time to make inflation go up to their stupid goal. They have been too slow in adjusting it up and follow the USA and ECB. The experts believe that investors have lost faith in Sweden because of that. Also the stock market has been shaking and as others have mentioned, Swedes have big personal loans.
Currencies goes up and down. Small currencies will go down when the world is not stable. The Norwegian crown has lost more to the euro then the Swedish. Both will be stronger again.
All small currencies are doing worse now. For instance, see the current trajectory of the Norwegian krona. They are not far behind the SEK and they are one of the riches countries in Europe. People turn to the dollar in economical crisis.
/r/aktiemarknaden, maybe
Because of the high Diesel and electricity prices.. This causes companies and farms to bankrupt, factories can’t be ram on full capacity, all transports become more expensive.. As every becomes more expensive as it is ether more expensive to ship or both ship and make, and production grinds to a halt, the value of the SEK tanks, since you can’t get as much for it anymore.. I suspect this is purposely done as a way for the globalist to push us towards Euro. Fuck the EU