Domestically the housing bubble and its collapse indirectly reinforced these problems due to the large contributions to the bust of the real economy. Of course also the negative spill over from the weak international economy took its toll on the real economy and bank exposures. In our assessment, Denmark has come a long way to clean up problems in the banking sector.
The extremely high propensity to save in China has been explained largely by the low level of household wealth, lack of social security, and increasingly worsening demographics. To a certain extent, similar developments can also be seen in some other Asian countries. Consumption is, after  2  BIS Review 79/2005  all, the ultimate aim of economic activity.