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We're Up To Our Eyes In Sea Of Debt

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We're up to our eyes in sea of debt

Home loans €252bn Credit cards €2.2bnNow economic experts say it has to stop

Kathy Donaghy

WE are facing into the New Year more in debt than ever before.

The amount we owe works out at a shocking €63,000 for every man, woman and child in the country.

While much of our personal debt is accounted for by our mortgages, the amount of debt on our credit cards is the equivalent of €550 for every single person in Ireland. And that was before the Christmas splurge.

The latest Central Bank statistics show home owners borrowed €2.1bn last month - the largest ever monthly rise in residential mortgages.

And total lending by credit institutions in Ireland increased over the previous month by €5.4bn to €252.3bn. That represents an increase of almost 30pc in a year.

The figures brought a warning from a leading economist that we can't keep on borrowing at this rate.

Pat McArdle, Chief economist at Ulster Bank, pointed in particular to the 30pc figure.

"There is a limit to how long we can go on like this," he said.

"The risk is from the end of 2006 we are seeing growth still in the 20s. The longer that goes on the greater the risk."

He said he would much prefer to see an "orderly slow down" with the percentage rate settling in the mid-20s and even that would be "uncomfortable".

According to the figures, at the end of last month we owed €2.2bn on our credit cards - €550m more than we owed at the end of November 2003.

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He said he would much prefer to see an "orderly slow down" with the percentage rate settling in the mid-20s and even that would be "uncomfortable".

I rather expect that in the not too distant future Ireland will see a disorderly slowdown.

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Guest Charlie The Tramp

What can possibly go wrong for such happy people.

Will they have to rewrite their unofficial National Anthem.

There's a tear in your eye,

And I'm wondering why,

For it never should be there at all.

With such pow'r in your smile,

Sure a stone you'd beguile,

So there's never a teardrop should fall.

When your sweet lilting laughter's

Like some fairy song,

And your eyes twinkle bright as can be;

You should laugh all the while

And all other times smile,

And now, smile a smile for me.

When Irish eyes are smiling,

Sure, 'tis like the morn in Spring.

In the lilt of Irish laughter

You can hear the angels sing.

When Irish hearts are happy,

All the world seems bright and gay.

And when Irish eyes are smiling,

Sure, they steal your heart away.

For your smile is a part

Of the love in your heart,

And it makes even sunshine more bright.

Like the linnet's sweet song,

Crooning all the day long,

Comes your laughter and light.

For the springtime of life

Is the sweetest of all

There is ne'er a real care or regret;

And while springtime is ours

Throughout all of youth's hours,

Let us smile each chance we get.

When Irish eyes are smiling,

Sure, 'tis like the morn in Spring.

In the lilt of Irish laughter

You can hear the angels sing.

When Irish hearts are happy,

All the world seems bright and gay.

And when Irish eyes are smiling,

Sure, they steal your heart away.

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The amount we owe works out at a shocking €63,000 for every man, woman and child in the country.

And total lending by credit institutions in Ireland increased over the previous month by €5.4bn to €252.3bn. That represents an increase of almost 30pc in a year.

This is why house prices are still rising in Ireland at double digit rates.

It is due to the obscene level of credit being pumped into the economy. It really is as simple as that. All that free money has to find a home somewhere and it is being tied up in the housing market - what a waste.

The more I think about this 30pc per annum figure, the more shocking it becomes. This is not an economy under any sort of control and the Central Bank knows it.

But the problem now is this: How can the institutions reign in their lending and still lend enough to support the economy and the housing market? I feel now that they can't. Any attempt to curb lending would be initiate a devastating downward spiral.

In their dash to gain a bigger slice of the pie, the financial institutions have embarked on a suicide mission.

The train is getting ever faster with the driver asleep at the controls.

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The ECB has advised the Irish government to take “appropriate action” to cool the housing market, the IMF have warned of “unsustainable house price inflation” the ERSI have suggested that the government should consider a new property tax. But the Irish government will do nothing; as any action now will cause the market to crash in weeks.

If the construction boom ends the economy is screwed, if house prices remain at the present absurd levels the economy is screwed.

:ph34r:

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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