But let's move to the subject. Mark Thornton, an economist, who wrote about the Norwegian housing bubble already in January this year (on my birthday, of all days!), has written a short update on the situation in Norway. In it he links to my blog reports as evidence that Norwegians have entered the "denial phase". I think he's right in that there seems to be a widespread denial of the possible - even likely - negative consequences of the house price decline that has just started.
It seems that nearly every driver of economic growth is expected to flatten out. An extreme example of this is this Dagens Næringsliv interview with Rune Bjerke of DNB where the leader of biggest bank confirms that
- investments in new houses [due to declining house prices, I assume],
- investments in the oil sector,
- private consumption, and
- investments by companies in general,