Professor of Finance Vesa Puttonen of Aalto University predicts that debt problems will continue to plague the United States. The US Congress has given the green light to taking on more loans, but so far nobody has offered to give them out, the professor notes.
The USA's habit of living on credit has reached the pain threshold, said Puttonen in an interview with the YLE breakfast show Aamu-tv. He observed that a politically inflamed situation and Europe's debt crisis compounded the problem.
According to Puttonen, the question is now whether the politicians' ability to get the debt situation under control can be trusted.
"This matter should have been resolved half a year ago," he noted.
Puttonen said that the decision to take out more loans has not put an end to the problem—the country's next challenge is going to be finding willing creditors.
The US situation may affect Finland by weakening the outlook for export businesses and creating uncertainty in financial markets.
YLE