Revised statistics reveal Denmark was in fact in recession in the second half of 2011.
4 out of 10 banks lost money in 2011. This in a period where the supply of cheap money has been unprecedented!
Danske Bank - one of the top 2 banks in Denmark - has made use of approximately 56 billion danish kroner - about $10 billion USD - of cheap 3 year funding from the National Bank of Denmark. Nordea Bank has not made use this cheap money due to the restrictions its use would place upon the bank as a whole - but Danske Bank needs it.
Meanwhile banks and politicians are tightening the screws on the housing market - through higher taxes and more restricted lending practices.
Obviously the billions and billions of dollars and billions and billions of euros have not filled the vacuum created by the collapse of financial markets in 2008. Everyone is scrambling to get their own house in order. Can this end in anything but a train wreck?
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