debt deflation - Max Keiser

Stacy Summary: Alas, it seems we need a deep, long, painful depression before people will give up their frenzied speculative herd mentality. Bad news for those that aren’t part of the speculative herd. Despite the collapse detailed in the Baltic piece, their markets there are booming this year (after falling heavily last year), with Latvia up the most.

Hong Kong goes into speculative overdrive

Debt deflation laboratory of the Baltics

Cost per sq.m has dropped from €1,611 (£1,455) to €669 since April 2007, according to Ober-Haus Real Estate Advisors. Swedbank says up to 30pc of its mortgages in Estonia are in negative equity. Recent loans are in euros – not the local kroon.

Professor Ülo Ennuste from Tallinn University says the private net wealth of Estonia’s people has fallen below zero. I know of no other country in the world where this has occurred, though Latvia may be deeper in hock. Estonia’s foreign debt is 116pc of GDP, second highest in Eastern Europe.