Monday, Jun 23, 2008
Did Ireland's HPC play a part in the NO vote?
The Telegraph: Has Europe's terminal crisis begun with a triple no vote?
A property bubble - caused by EMU interest rates of 2pc until 2005 - has left Ireland with frightening household debt of 176pc of gross domestic product. The country now faces a quadruple shock: a credit crunch, rising interest rates in Frankfurt, a plunge in sterling and the dollar, and a sharp slowdown in its Anglo-Saxon export markets....and you forgot Ambrose, the HPC in Ireland is well under way
Posted by sold 2 rent 1 @ 09:46 AM (446 views) Add Comment
8 Comments
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1. uncle tom said...
Barely on-topic, but an excellent read.
Highlights the fundamental error of trying to achieve european integration through a single currency, instead of achieving a single currency through greater integration.
The euro is only likely to survive if Germany bails it out; with most Germans wanting the Mark back, that can't be guaranteed..
2. japanese uncle said...
You need a pinch of salt when the IMF and other quasi-public (under private interests really) institutions started to call you a tiger. It could well be a gimmick to push you astronomical debt.
3. mken said...
Off topic yes, but excellent read?
Using Ireland as a proxy - since when was the Irish voice respected in the UK? By the Telegraph?
UK and Ireland both have HPCs, but of course the EMU is at fault? What fine analysis.
Ireland in trouble - yes, mostly caused by corrupt pro-building policies of Fianna Fáil. Not mentioned.
Will the UK ever exit EU and stop whingeing
4. Pm said...
Ireland shouldn't blame the ECB for its housing bubble: with the exception of Spain, most other eurozone countries managed to keep their house prices under control. Irish politicians were the first to complain when the ECB began raising interest rates in 2006.
The Irish government had many possible ways to limit the bubble: it could have restored property taxes, scrapped the tax breaks for developers, scrapped the exemption of owner-occupied property from capital gains tax, and made mortgage debts not legally recoverable unless they complied with some basic requirements (like verified income, <90% LTV).
5. uncle tom said...
"Will the UK ever exit EU "
Probably, hopefully!
But the EU is more likely to just fall apart - much as the old soviet bloc did two decades ago.
6. uncle tom said...
Mken,
The fact that the remaining federalists can offer nothing more than arrogant indignation, clearly shows that they've lost the argument.
7. planning4acrash said...
On topic? Who cares, you guys are totally sucked in by the compartmentalised free speach that we have in this world today.
8. planning4acrash said...
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