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    1. Northlumberman on

      There is a high level of home ownership in Norway and house prices have risen. So households have high mortgages. But that’s the situation in many other countries.

      Norwegian households have also taken out large consumer loans in addition to their mortgages. People feel rich because they own a valuable asset, and for the same reason the banks are willing to lend them money. So they buy expensive things that they can’t afford from their regular incomes.

      This situation is different to most other countries, where its more common that people with large consumer loans aren’t home owners.

      I think that highly indebted Norwegian families are at risk if there is an economic recession that results in a combination of unemployment and declining house prices.

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