Is the housing market «too big to fail»?
Øyvind Thomassen: If house prices ever fall considerably that will lead to an economic decline. Will the government save highly leveraged homeowners?
If reducing the key interest rate is not sufficient, will the government actively support households with big house loans, like a unanimous Norwegian Parliament (Storting) agreed to support Kurt Nilsen and Petter Stordalen through the corona crisis? Common homeowners probably also have to be saved from negative equity? Øyvind Thomassen writes.
His feature article Er boligmarkedet «too big to fail»? (in Norwegian) was published in Dagens Næringsliv on 26 November, 2021.