After the Anglo Irish Bank and the fact that the Government has to give 100% guarantee for deposits, leaving it with potential liabilities of twice its GDP.
Unemployment is soaring, public spending is facing major cuts - rumours doing the rounds that Brian Cowen might have to approach the International Monetary Fund.
Is the Republic set to become another Iceland ?
[size=+2]Time for change !![/size]
Why is this in the NI forum?
Just wondering what the folks in NI think of this and what impact it would have businesses in the NI.
[size=+2]Time for change !![/size]
I'm sure Tesco, NI's biggest private sector employer, will be fine.
Boring. Time to take the advice of your own signatureOriginally Posted by Belfast-citizen
You wish. No it won't. For it to become another Iceland the 3 largest banks would have to collapse, and in the final analysis, unlike Iceland, Irish banks can ask the ECB for a bailout, unlike Landsbanki and the other banks in Iceland. Obviously the ECB has vast reserves available to it relative to the central-bank of a tiny country like Iceland. The currency-depreciation seen in Iceland can't happen in the Eurozone, and even if it did, the impact would be mitigated by the fact that it has 16 members and as such, trade between them won't be affected by the exchange-rate.
Interesting article about subordinate debt.
Casino where the gamblers never lose - Gene Kerrigan - Independent.ie
"When I die Dublin will be written in my heart"
[size=+2]Time for change !![/size]
What would be of concern to me is that Northern Ireland is very heavily dependent on public sector jobs. The UK economy is tanking rather more seriously than is being reported by the British media and does not have the back up of the ECB. The rates sterling reached before xmas were scary.
The Republic's financial ups and downs are much more rapid and magnified because the country's very small.
The UK is facing into what is looking likely to be a prolonged and very deep recession.
My concern is that Northern Ireland is exceptionally heavily dependent on UK funded public service jobs. Cutbacks up North could have a much deeper and more prolonged impact than cutbacks in the Republic which has a somewhat more nimble workforce as it's not so public-sector loaded.
We can look at the Irish Republic and see what is happening. They are pretty much 6 months ahead of us. The difference is though that the UK government it spending itself out of the recession. And I'd say that Robinson is keen to tag along to that. But the jobs are starting the go and the number of unemployed rising. I'm not sure if you noticed, but almost all the Polish people are now gone.
I think retail is holding us up at the moment, particularly in the border areas. But that will be a short-term thing. I agree about public service jobs, there will be reorganizations. Although when policing and justice will be devolved there will be some room to move people about. I'd say there will be at least a freeze on hiring people.
I do see a lot more people going back to education and many students going for more traditional subjects. So there might be opportunities there...
"The thing that always annoyed me about traditional Irish historiography was the paradox of its Anglocentrism. People are now prepared, I think, to confront the possibility that many Irish problems are, in a sense, indigenous to the Irish situation." Roy Foster (1989).
I don’t know why this can possibly can up.
There are 2 main parties in power with a number of independents supporting them.
This is our national government.
If FF cannot deal with the crisis w2hich they were supposed to be experienced to deal with, an election is needed and opposing strategies can be voted on.
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