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Ireland economy hitting the Buffers !!
ultra10
Posts: 379 Forumite
Spotted this coming out of Tesco this evening, Ive heard a few times how the Celtic Tiger was expanding so rapidly that something was going to go seriously wrong at some point !! :eek:
http://www.independent.ie/national-news/cabinet-goes-on-holidays-as-crisis-worsens-1441810.html
http://www.independent.ie/national-news/cabinet-goes-on-holidays-as-crisis-worsens-1441810.html
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Spotted this coming out of Tesco this evening, Ive heard a few times how the Celtic Tiger was expanding so rapidly that something was going to go seriously wrong at some point !! :eek:
http://www.independent.ie/national-news/cabinet-goes-on-holidays-as-crisis-worsens-1441810.html
Yes - the Irish housing market was like the British one on steroids - and that's saying something.
Compounding matters there was massive oversupply as a result of lots of new builds springing up everywhere seemingly against all planning laws. Nothing to do with the fact that senior figures in the ruling party were cosy with wealthy builders I'm sure
In any case, like the British economy the Irish economy came to be largely dependent on people building and selling houses to each other and of course borrowing money against those houses to consume. Now the wheels are coming off it rapidly.
Since it started to decline about 9 months to a year before the British one, expect similar tales of woe soon in GB. The only thing that might make it any better is that general oversupply isn't as bad - though of course there's massive oversupply in purpose-built BTL 'luxury apartments' which will likely have a knock-on effect.--
Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.0 -
I expect Ireland will be in a far worse position than the UK, since in the UK we have control over interest rates, whereas Ireland does not. IMHO, the situations in both Spain & Ireland are almost identical, but does not bear good correlation to the situation in the UK. That is not to say that there will not be some similarities.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0
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I have two relatives working in the public sector there. The one who works in the dole office says they are inundated with people from the construction industry. The one in the Department of Finance says the tax take is way down and they are concerned about funding. It's getting nasty.Stercus accidit0
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Came back a while ago from Ireland. If anything it is madder than the UK for housing.0
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I have two relatives working in the public sector there. The one who works in the dole office says they are inundated with people from the construction industry. The one in the Department of Finance says the tax take is way down and they are concerned about funding. It's getting nasty.
Ireland is in an extra bind due to membership of the Euro. They couldn't set interest rates to rein in an overheating economy on the way up and they can't set them to stimulate on the way down. Also, they're not meant to run a budget deficit of > 3% of GDP which may mean some pretty tough choices in the months to come.0 -
Ireland is in an extra bind due to membership of the Euro. They couldn't set interest rates to rein in an overheating economy on the way up and they can't set them to stimulate on the way down. Also, they're not meant to run a budget deficit of > 3% of GDP which may mean some pretty tough choices in the months to come.
What's our budget deficit?
& err what is a budget deficit? I presume HM Govt. spending more than it receives."Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0 -
Guy_Montag wrote: »What's our budget deficit?
& err what is a budget deficit? I presume HM Govt. spending more than it receives.
Our budget deficit is 2.8% I think. That doesn't include off balance sheet items such as PFI and unfunded pension liabilities accruing.
A budget deficit is the difference between government income and expenditure and is normally measured as a %age of GDP.0 -
plenty of irish people invested in the UK BTL madness too ....
so a double edged sword of damacles hanging over manyIt's a health benefit ...0 -
Does Ireland even have an economy? Other than receiving EU handouts, I mean.poppy100
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