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About LinkBacksWe are fooked mate, We cannot even control interest rates.
We are fooked mate, We cannot even control interest rates.
Its Well for some of you that have the time to bitch to each other about the state of the economy, about who is right, what went wrong etc. you must be ex-builders that have the time to surf the net!
There seems to be an element of glee among some folk regards the economy going sourer and house prices crashing..
well one thing for sure, the banks arent giving out the money like they used to.
so its a vicious circle for sellers and buyers. And whats more the government will probably put the taxes up on people working so to pay for the people who are not.
Many are happy to see house prices falling, myself included. I don't think there are many who like to see the economy go sour as a result. The two situations need not have been intrinsically connected.Originally Posted by Oriel27
The future saviour of the Irish Economy:
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I would say, I am more fascinated at the fact that we made the same mistakes that the British did back in the late 80's (I was there to witness it), which led to a spectacular crash in the 90's. Even the tacky new overpriced houses in some way resemble British housing estates.
I am also fascinated that people are still saying "this time it is different".
Well, it's different from the UK in the 1980s in a few ways:
1) We're in a large strong stable currency bloc
2) We've no control over most aspects of fiscal policy
3) The crisis is largely being driven by a weird market problem which is global. We're basically feeling the squeeze as banks can't get access to funds to lend.
However, no major housing boom in any market has gone well in the long term.
What we haven't yet seen is whether this is a bubble burst scenario. The Irish housing market was completely overheated and over hyped, particularly in the last 3 to 5 years.
*ALL* building booms eventually come to an end anyway, you can't just go on building forever. The demand eventually dries up.
The big problem now is that the 2007 house build seems to have fairly substantially overshot the market demand. There's going to be a hell of a lot of apartments on the market with no buyers.
I reckon we'll see a glut of new apartments going straight onto the rental market and that will drive rental prices much lower. Also, as the well paid foreign builders move on to some other place with a building boom, the rental prices will drop even further and faster.
Couple that with the fact that loads of small investors tried to cash in by buying to rent and you've got a pretty serious mess on your hands.
Sadly, it's just the downside of the Fianna Fail - The Property Developer's Party approach to economics.
On the plus side, the rest of the economy seems to be holding up quite well. It could still be something that we weather out.
Most of this is completely beyond our control though.
Also, it's worth noting that the oil price isn't nearly as rapidly soaring in the Eurozone countries. Remember it's priced in US$, even though the oil's sold in US$, it seems that it's actually being priced in a stronger currency as the dollar plunges the oil price is soaring. For Europeans it's not have quite as big an impact as the Euro has held very strong against the US$. The UK£ has taken a big plunge too so the brits are feeling the heat more than we are.
Hopefully with a democrat president at the helm in the US by the year's end we might see some kind of improvement and stability returning to the global financial system! Something has to change a.s.a.p.!!
Dave, I fully agree that we should be civil to each other here on this forum ( I also agree that the corrupt politicians who got us into this mess deserve all the abuse and anger that is being hurled their way and more)
However, How on earth can you claim that a generation does not face "decades of financial slavery" when that is exactly the fate that awaits those young people who mortgaged themselves to the hilt to get on the property ladder over the last few years ? ? ? .
The Public Private Partnership system, where we go into a hidden debt to deliver profits to the private sector - except that the margins have disappeared and nobody has a plan B for how to house people.Coming soon to a Ghost Estate near you, Ireland's leading man Canny McSavvy stars in this summer's breathtaking crime caper "BTL Corpo"....
evil:
Public private partnerships mean that the private parts (that's a very appropriate name for them actually...) share any profit and the public part (i.e. the taxpayer) pays ALL of any loss.......
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