There hasn't been a thread about this topic for months, and with the new numbers supplied by Karl Whelan, it's now justified. Several years ago, we had one almost lone voice in the media, yelling to a tiny audience about how we were making an outrageous financial error.
David McWilliams enjoyed a rich diet of ridicule and scorn for his efforts to point out the facts behind the bubble nature of the housing market. His logic was flawless, but people weren't in the mood to accept any logic. So the bust happened and surprised almost everybody.
History: first as tragedy; second time round, farce. It's happening again, only this time there's even less excuse for it.
For all the foolishness of getting a mortgage, at least the victims of the housing madness got something out of it. They got a house. More significantly, they got the illusion that they were rich. Those are two genuine benefits that make your day seem better, which is no small thing.
What excuse have the Solidarity Bond refuseniks?
Here's one of the better-reasoned examples:
That's the point, you do pay your taxes. And where do those taxes go? They go to pay high interest rates to foreigners. You and your fellow taxpayers will pay 1.5bn in interest in the first year alone to foreign bondholders (source: The Irish Economy » 2010 » October). That money is gone forever, you will never see it again, because it will be spent in Tokyo, Macau, Sydney and Rio de Janeiro. It will never circulate in Ireland.Originally Posted by Sync
So if you pay, say, 5000 in tax, that means that you are personally giving something like 250 to a foreigner.
You could have avoided that pointless waste of money by simply becoming one of the lenders to Ireland. Instead of losing 250 forever, you'd have temporarily given up control of it, and got it back with interest.
There's no way to sugar coat it. The "horrible financial decision" was patently the one you espoused. The two decisions have been market-tested, and yours is 250 worse. My proposal would have seen you invest 250 and, in time, get back about 300 to 400. Your counter-proposal leaves you being forced (by the Revenue) to give 250 to a foreigner for a personal return of 0.00.
Nice going, Mr Gekko.