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Bubble Trouble Goes Primetime

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Attached is a extract from last nights RTE Primetime current affairs programme.

The bearishness of the initial extract reflects growing concern in the Irish media regarding the possibility of a hard landing for the Irish economy in light of a bursting property bubble. The politicians still argue that everything in the garden is still rosy, however the mounting evidence to the contrary is making their position look increasingly absurd.

Primetime RTE 13.4.06 9:30 pm

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Attached is a extract from last nights RTE Primetime current affairs programme.

The bearishness of the initial extract reflects growing concern in the Irish media regarding the possibility of a hard landing for the Irish economy in light of a bursting property bubble. The politicians still argue that everything in the garden is still rosy, however the mounting evidence to the contrary is making their position look increasingly absurd.

Primetime RTE 13.4.06 9:30 pm

http://www.breakingnews.ie/2006/04/14/story254153.html

Top banker warns mortgage growth will damage economy

14/04/2006 - 10:16:55

One of Europe's top bankers has warned that Ireland's economy could be in danger of over-heating.
Chief Economist at the European Central Bank, Otmar Issing has said mortgage growth rates pose a threat to Ireland's economy.
Mr Issing said policy vigilance by the Irish Government is required in order to ensure that the increasing number of mortgage loans does not damage the economy.
He has warned the Government they cannot be complacent and says it is possible for them to prevent the problem, if they tackle the issue immediately.
Mr Issing's comments came in the wake of yesterday’s CSO announced that inflation has hit a three year high of three and a half percent.
Last week the ECB said it was worried about an 11% rate of house price inflation in Ireland.
It also said it believed current rates of house construction are too high.

Some pain coming to the Irish bubble soon it seems?

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http://www.breakingnews.ie/2006/04/14/story254153.html

Top banker warns mortgage growth will damage economy

14/04/2006 - 10:16:55

One of Europe's top bankers has warned that Ireland's economy could be in danger of over-heating.
Chief Economist at the European Central Bank, Otmar Issing has said mortgage growth rates pose a threat to Ireland's economy.
Mr Issing said policy vigilance by the Irish Government is required in order to ensure that the increasing number of mortgage loans does not damage the economy.
He has warned the Government they cannot be complacent and says it is possible for them to prevent the problem, if they tackle the issue immediately.
Mr Issing's comments came in the wake of yesterday’s CSO announced that inflation has hit a three year high of three and a half percent.
Last week the ECB said it was worried about an 11% rate of house price inflation in Ireland.
It also said it believed current rates of house construction are too high.

Some pain coming to the Irish bubble soon it seems?

what did everybody think Paddy would do with interest rates at 2% ? :blink:

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Last week the ECB said it was worried about an 11% rate of house price inflation in Ireland.

It also said it believed current rates of house construction are too high.

'Ireland has highest European per capita house building rate':

http://www.finfacts.com/irelandbusinessnew...e_1000716.shtml

The strength and extent of the property boom can be seen in the fact that over a third of the current housing stock has been built in the past decade. Annual completions are 3.5 times what they were a decade ago, and the country has the highest per capita building rate in Europe.

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Prices are rising in Ireland by 20-30% at present. When prices stop rising the mania will end and the market will crash. This may impact the UK market as Irish BTL investment dries up.

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Move along ... nothing to see here ...!

The problem with these "doom and gloom" economists is that they educate people and make them cautious. That leads to stagnation rather than a crash. It's much better, from a future opportunity viewpoint, that people do not know the truth.

I've actually turned rather bullish on the outside. So everyone, buy now or else you will never be able to afford anything!

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Guest Winners and Losers

Move along ... nothing to see here ...!

The problem with these "doom and gloom" economists is that they educate people and make them cautious. That leads to stagnation rather than a crash. It's much better, from a future opportunity viewpoint, that people do not know the truth.

I've actually turned rather bullish on the outside. So everyone, buy now or else you will never be able to afford anything!

Yep, I'm lovin that tactic too. Oooh, if you don't buy now you might miss the boat. Yeah, if I were you I'd get in now while you still can. I wonder if they will blame us for telling them TO BUY when the crash comes??

Is someone trying hack me????? :angry:

Edited by Winners and Losers

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Move along ... nothing to see here ...!

The problem with these "doom and gloom" economists is that they educate people and make them cautious. That leads to stagnation rather than a crash. It's much better, from a future opportunity viewpoint, that people do not know the truth.

I've actually turned rather bullish on the outside. So everyone, buy now or else you will never be able to afford anything!

You have a point. Buy now for the love of Jesus, before its too late! :)

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what did everybody think Paddy would do with interest rates at 2% ? :blink:

Come to Liverpool and buy up boarded up houses, or houses next to those boarded up. Jammy tw*ts then flogged `em for twice what they paid though :blink: mainly to southern softies :lol:

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I've actually turned rather bullish on the outside. So everyone, buy now or else you will never be able to afford anything!

Indeed, I love it when the Beeb publish their oh-so-lovely stories, it means Crash Gordon come unstuck sooner rather than later.

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Mr Issing said policy vigilance by the Irish Government is required in order to ensure that the increasing number of mortgage loans does not damage the economy.

He has warned the Government they cannot be complacent and says it is possible for them to prevent the problem, if they tackle the issue immediately.

I'm a little at a loss as to what Mr. Issing suggests the Irish government does. I mean surely IRs are the only meaningful way to tackle this?

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Had to laugh at that 'mortgage advisor' (at least thats what I think they said he was) who told people that if they could afford there mortage to go up by 100 euros, that 'that was the mortgage for them'

100 Euros?

Is this guy on another planet?

At rates at 2.5% or whatever in euroland, a raise to, lets say 5% would DOUBLE their ridicilous mortgages.

even 3.5% would crucify many. Come the revolution I hope he's the first with his back to the wall.

I'm a little at a loss as to what Mr. Issing suggests the Irish government does. I mean surely IRs are the only meaningful way to tackle this?

How about a substantial fine for anyone loaning more than 3.5X on genuinely proven income?

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Move along ... nothing to see here ...!

The problem with these "doom and gloom" economists is that they educate people and make them cautious. That leads to stagnation rather than a crash. It's much better, from a future opportunity viewpoint, that people do not know the truth.

I've actually turned rather bullish on the outside. So everyone, buy now or else you will never be able to afford anything!

I guess you agree with the 20% - 30% rise in fact.

Which means the English HPI is much infalted.

And we're having a crash now - thanks for putting me straight there Tester if you believe your own words then I'm happy as a pig in sh1te. You have cheered me.

Do you really think it is that bad here?

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Euro interest rates are obviously set for to suit economic conditions in the major economies like Germany and France and Italy whose economies have been sluggish to say the least.....This ''one-size-fits-all'' monetary policy is the reason for the Irish boom .....The Irish economy has needed higher rates like AUs and NZ to cool things down but has had rock bottom rates for years ...

I dread to think what's going to happen to Paddy if and when France and Germany boom whilst Ireland slumps!..................High IRs on Irish mortgages in the face of an economic and housing slump!.....

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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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