Earlier quoted context omitted.
The Dutch are also the most indebted people on earth: http://www.oecd-ilibrary.org/sites/factbook-2013-en/images/g... http://online.wsj.com/news/articles/SB1000142405297020375260... http://www.economist.com/blogs/charlemagne/2013/11/netherlan... Which means that as a country the people will have to either fall into bankruptcy, dramatically cut their quality of living, or work a lot more. All that leisure time came at…
Well... this is slightly disingenuous. The WSJ article specifically mentions that this relates to secured debt (mortgages), not credit card debt. Interest rates are fully tax deductible in the Netherlands, which incentivizes higher mortgage debt than in many other countries. Many people own homes, and the ones that do borrow the majority of the market value when buying. Housing prices did fall recently (and are now h…
Another factor (IIRC) is that before the crisis, housing prices just went steadily upwards, doubling or even tripling their values during a lifetime (probably less if you take inflation into consideration). This caused a lot of people to extend their mortgage or take a second or even third mortgage on the gained value of their house, which was used to add to the house or buy a car or things like that.