Flanker Posted January 30, 2009 Share Posted January 30, 2009 http://www.ananova.com/business/story/sm_3180951.html?menu= "You would be forgiven for thinking nothing has changed as you walk through Dublin's streets - but the Celtic Tiger is most definitely not at the height of its power. Go for a coffee, take in lunch, pop into a pub for a Guinness and it the place seems vibrant still. It may not look any different, but beneath the glittering façade of Dublin's Docklands development the reality is a country in recession. The economy is crumbling and, like Britain, the financial services and construction industries are collapsing. In the Docklands, a huge multi-storey block towers over the River Liffey. It was to be the new headquarters of the Anglo Irish Bank - but the bank has since been nationalised and the development deal looks in ruins. Ireland is diving headlong into a recession that few could ever have imagined. The government is trying to make huge expenditure savings, totalling billions of euros over the next few years. But with the unions refusing to agree, it seems likely that there will be a collision and it will be bloody and nasty. Leading Irish economist David McWilliams told Sky News: "In the next few weeks, the buses will be on strike. "Teachers will be working to rule and nurse and hospital staff will be considering action. "The government and the unions will face each other off. The Government will say it can't pay and there will be a battle, and the government will win - it has to." Unemployment in Ireland is a shade under 10% and is growing. The rate of new redundancies has risen by 70% in recent months. Mr McWilliams is among a growing number of economists in countries at the lower end of the Eurozone that are actively talking about leaving the currency. Either Europe bails them out, or they hope to leave and set their own interest rates and monetary policies. This would allow them to follow the example set by Great Britain, where not being in the Eurozone allows some room for manoeuvre. Britain can lower interest rates and its policy of bail-out support - as seen with the banks - may well make all the difference. But if these policies do not work, then there could be some truth in the latest joke doing to rounds in Dublin's beleaguered stockbroker offices. People ask: "In this recession, what's the difference between England and Ireland?" The answer: "About three and a half weeks."" Quote Link to comment Share on other sites More sharing options...
An Bear Mór Posted January 30, 2009 Share Posted January 30, 2009 OK -I'll go first. Time to get back potatos / lucky charms / tarmaccing driveways. Now be of with ye. Begorrah. Quote Link to comment Share on other sites More sharing options...
ubuntu Posted January 30, 2009 Share Posted January 30, 2009 Ireland will go back to doing what it's best at: exporting people. Quote Link to comment Share on other sites More sharing options...
Peter Hun Posted January 30, 2009 Share Posted January 30, 2009 >People ask: "In this recession, what's the difference between England and Ireland?" Oh, and its own currency, its own interest rate policy, twice the minimum wages, geography,15x population size, a third the GDP dependence and personal wealth on property, massive difference in industrial, financial and exporting base. But, coming from stockbrokers, what the *** do you expect. Quote Link to comment Share on other sites More sharing options...
OLDFTB Posted January 30, 2009 Share Posted January 30, 2009 The Irish can't play at being the "victim" this time round. They brought this disaster down on their heads themselves. Quote Link to comment Share on other sites More sharing options...
HAIR BEAR CRUNCH Posted January 30, 2009 Share Posted January 30, 2009 >People ask: "In this recession, what's the difference between England and Ireland?"Oh, and its own currency, its own interest rate policy, twice the minimum wages, geography,15x population size, a third the GDP dependence and personal wealth on property, massive difference in industrial, financial and exporting base. But, coming from stockbrokers, what the *** do you expect. at least there isnt much crime and its not islamified Quote Link to comment Share on other sites More sharing options...
Deckard Posted January 30, 2009 Share Posted January 30, 2009 (edited) Mr McWilliams is among a growing number of economists in countries at the lower end of the Eurozone that are actively talking about leaving the currency.Either Germany bails them out, or they hope to leave and set their own interest rates and monetary policies. Amended for you. Fat chance Edited January 30, 2009 by VoteWithYourFeet Quote Link to comment Share on other sites More sharing options...
Peter Hun Posted January 30, 2009 Share Posted January 30, 2009 at least there isnt much crime and its not islamified Ireland has a very high rate of murder, and the UK isn't 'islamified', thats plain idiotic. Quote Link to comment Share on other sites More sharing options...
workingnomad Posted January 30, 2009 Share Posted January 30, 2009 at least there isnt much crime and its not islamified Since when has England been Islamified?! Quote Link to comment Share on other sites More sharing options...
VeryMeanReversion Posted January 30, 2009 Share Posted January 30, 2009 property pin is worth a google if you want more information on their crash (irish HPC side). I've read most of the articles their over the last year and have little hope for their economy. Their population is mobile so who will stay to pay the bills? (Answer: Not enough so expect mass default) Their boom was bigger than ours, the average income was lower and the flighty companies that set up there for tax reasons are moving out for cheaper labour elsewhere. They were the hot-money investment capital of the EU and will suffer the most in the downturn, much worse than the UK that had a smaller boom but is relatively stable. VMR. Quote Link to comment Share on other sites More sharing options...
An Bear Mór Posted January 30, 2009 Share Posted January 30, 2009 >People ask: "In this recession, what's the difference between England and Ireland?"........twice the minimum wages.......... Not the case - the basic wage in Ireland is actually higher thean the UK - hence Dell et al moving to pastures new. This is one of the big hindering things to this economy - the cost of doing business here is too high. The min wage currently site at AFAIK €8.65. This will have to change.... We won't be able to export people, not to the extent as before. People are already looking far and wide. I had a recruiter called me the other day about a job in Chine (Project Manager - Construction). Quote Link to comment Share on other sites More sharing options...
HaveAniceDay Posted January 30, 2009 Share Posted January 30, 2009 To simplify it "There is no difference anywhere in the world at the moment" To be spoken in a Scottish accent "We are all DOOOOMMEDD" Quote Link to comment Share on other sites More sharing options...
Guest sillybear2 Posted January 30, 2009 Share Posted January 30, 2009 "I'll dig ye a massive hole in the ground Sir, so I will, big enough to contain all the banks toxic shit, so it is" Quote Link to comment Share on other sites More sharing options...
D.C. Posted January 30, 2009 Share Posted January 30, 2009 Forgive my warped imagination but, does anyone have- a guiness pint glass and a fluffy tigger toy? The image of the celtic tigger cowering inside the glass seems an apt analogy for the Irish economy. Quote Link to comment Share on other sites More sharing options...
Guest An Bearin Bui Posted January 30, 2009 Share Posted January 30, 2009 Mr McWilliams is among a growing number of economists in countries at the lower end of the Eurozone that are actively talking about leaving the currency.Either Europe bails them out, or they hope to leave and set their own interest rates and monetary policies. This would allow them to follow the example set by Great Britain, where not being in the Eurozone allows some room for manoeuvre. This is just David McWilliams trying to strong-arm the ECB into action and it's reckless talk. There is no way that countries like Ireland, Spain etc should be even thinking about leaving the eurozone, they'd have to be out of their minds to even contemplate it. Ireland would be in the precise position that Iceland is now if they had still had the punt instead of the euro. Instead of hanging by a thread on a tiny IMF loan and some charitable help from regional neighbours, at least Ireland has a hope of raising finance on international markets by being in the eurozone. The spread on German vs. Irish bonds is quite high but think how much more dire the spread would be between deutschmark bonds and punt bonds if there was no monetary union. People talking about the eurozone breaking up are talking nonsense. I could see some relaxation of fiscal constraints being brought in to allow Ireland, Spain etc to run larger than normal deficits for a few years (France and Germany ran larger deficits during their 2001-2003 recession) but break-up would be unthinkable for the financial volatility it would bring across Europe. Go ahead and talk down the eurozone though - for my own personal investments, I wouldn't mind seeing it weaken against the pound a little! Quote Link to comment Share on other sites More sharing options...
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