Monday, June 21, 2021

Swedish Government Collapse?

 What you had today (Monday) was a vote of no-confidence for the Swedish PM.

The guy was from the Socialist Democratic Party (center-left) and this 'crisis' (if you want to call it that....was about one central issue...dumping rental control prices on newly built properties.

Everyone thought it as 'great' to have the rent controls, but it amusingly enough created this brand new problem....apartment construction went into a slow-down and housing slowed to a degree.  The obvious answer?  Well....normally, you'd think about the lack of homes and just toss out regulations.  That apparently got people all disturbed.

What's left?  The PM has a week to either form a new government (finding a new partner) or establishing a date for a new election.  Yes, there was a national election scheduled for the fall of 2022 (11 Sep).  

Where this might all lead onto?  Well....this housing 'crisis' doesn't appear to be fixable, unless the government pumps in tons of money to building housing on their own.  

The funny thing about this deal?  It's the exact same scenario going on in Germany today.  They haven't collapsed a government, but if you walk around Frankfurt, Berlin or Hamburg....it's the same issue.

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