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Realistbear

Borrowing Still At Frenzy Level In Ireland

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http://www.businessworld.ie/livenews.htm?a...rollingnews.htm

No let-up in demand for loans: Survey
Wednesday, February 08 10:57:03
(BizWorld)
A Central Bank survey of the main lending institutions has found
no let-up in the pace of credit growth
in the final three months of 2005 and into January.
The Euro Area Lending Survey's Irish findings forecast an increase in demand for credit in the three months to the end of April this year and augurs well for the first half of the year.
Rising demand for credit is anticipated from businesses overall, particularly from SMEs and for longer-term credit, while both mortgage credit and
other consumer credit demand are expected to see even stronger growth.
A further slight increase was indicated in residential mortgage demand in the fourth quarter, with the average response for this question the
highest for almost two years
, the survey found.

I wonder what happens to economies that are built on frenzied credit growth?

Edited by Realistbear

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http://www.businessworld.ie/livenews.htm?a...rollingnews.htm

No let-up in demand for loans: Survey
Wednesday, February 08 10:57:03
(BizWorld)
A Central Bank survey of the main lending institutions has found
no let-up in the pace of credit growth
in the final three months of 2005 and into January.
The Euro Area Lending Survey's Irish findings forecast an increase in demand for credit in the three months to the end of April this year and augurs well for the first half of the year.
Rising demand for credit is anticipated from businesses overall, particularly from SMEs and for longer-term credit, while both mortgage credit and
other consumer credit demand are expected to see even stronger growth.
A further slight increase was indicated in residential mortgage demand in the fourth quarter, with the average response for this question the highest for almost two years, the survey found.

I wonder what happens to economies that are built on frenzied credit growth?

I have long expected that when ECB got around to raising rates it would have the effect here of people panicking to buy. This 'race against rates' phenomenon serves to illustrate the mindset here; get on the housing ladder at all costs. Rather than reducing demand, the possibility of higher interest costs here actually sparks demand... already one bank has radio ads suggesting FTBs get a locked-in rate now or be priced out...

repeat after me, "buy now or rent forever"...

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I have long expected that when ECB got around to raising rates it would have the effect here of people panicking to buy. This 'race against rates' phenomenon serves to illustrate the mindset here; get on the housing ladder at all costs. Rather than reducing demand, the possibility of higher interest costs here actually sparks demand... already one bank has radio ads suggesting FTBs get a locked-in rate now or be priced out...

repeat after me, "buy now or rent forever"...

This is a good case for compulsory basic financial and economics tuition in schools.

What do they think happens after they all get their houses, with their rates locked in? Are they not aware that the market requires new entrants? If they are aware of the need for new entrants, how do they propose that these entrants get into the market?

After all the door is shut, the boat has been missed! :rolleyes:

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The Irish are so screwed: the country is going to be an economic wasteland for decades after the ECB raise rates to rational levels.

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The Irish are so screwed: the country is going to be an economic wasteland for decades after the ECB raise rates to rational levels.

It will be very nasty for sure, but Ireland will emerge stronger and on a more even keel afterwards, a little like Thailand has, after its crash in the late nineties.

In the meantime, the shock for population will be so great that there could be a serious political upheaval. Sinn Fein will score plenty of points by blaming right-wing, free-market economic policy for the disaster. Of course, a more popular Sinn Fein will spook foreign investors and make the economic situation worse, but I think it could happen.

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Just in case anyone missed this;

(A punter who undertook her own valuation of her property, I nearly chocked on my cabbage and bacon when I read this.)

DIY VALUATION

Things are mad in Ireland (if you are reading this post overseas please call in the UN debt police immediately)

:ph34r::ph34r::ph34r:

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  • 301 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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