Housing ATM Theory and Finland's Property Bubble

Ukri who lives in Finland writes ....

We have very frothy housing prices here, especially in the capital area, and a world record of sorts in tying the loans into adjustable rate mortgages. Fixed rates are a peculiarity in Finland. Over 90% of all mortgages here are adjustable rates.

These clowns are actually trying to sell reverse mortgages for mostly elderly customers. And they are promoting them with the classic ATM-in-da-house bubble-pictures! The captions are something like "Going traveling again?!" and "Yeah since I have this home-made cash."

Above the pic it says something with a meaning of: "When you save equity by paying a mortgage, you can later utilize the equity once you retire".

Add Finland to the list of countries that will blow sky high once we get some sanity into euribor rates in terms of pricing risks accordingly instead of socializing the risk factor.

Get Your Housing ATM Reverse-Mortgage Today



Interestingly, the cartoon is supposed to depict a serious proposal from the quarterly housing market analysis of HYPO.

The captions were in Finnish but I changed them courtesy of Ukri's translations.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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