Not The Economist, but the economist Andreas Bergh who looks at things from a Swedish perspective. I add my Danish notes:
- Don’t withdraw your money from the bank. Agree: As chicken runs go, bank withdrawals are fascinating but the likely outcome from a bank run is a) a lack of liquidity, and b) that your money will be less worth than if you left them in the bank.
- Don’t fix the rates of your mortgage. Hmmm. Difficult – partly because there are some differences between the Danish and Swedish mortgage markets. The question is: Will rates go up or down in the medium term? If central banks want to increase liquidity, they should go down.
- Don’t sell your shares. Agree. Selling should have happened in 2006.
- If you work in an industrial company and have received your notice, you are in all likelihood in for a bumpy ride because the crisis will be linked with general structural change. I might consider making a bet that SAAB and Volvo PV will not exist as car producers in Sweden in, say, 2015. They may survive as brands, though.
- If voters don’t see the crisis as the government’s fault, the government is likely to be strengthened in public opinion by a crisis like the present. Yes, provided the government behaves reasonably and the alternative doesn’t look more attractive. Look at what happened to all Danish governments between 1974 and 1979: The won elections in 1975, 1977 and 1979!