Ireland and the GFC
Nov 21st 2010, 7:53 pm
#34
Joined: Jun 2006
Posts: 4,555
Re: Ireland and the GFC
The difference between the UK and Ireland is that the UK is not in the Euro which means the pound has depreciated giving it competitive advantage. The UK also flogs its bonds denominated in pounds and can pay off its debts by printing money. AAA but comes with a high interest rate. This is why the pound is in the doghouse.
Commonalities include a high debt level.
A big difference is that Ireland sought inwards investment through low corporate taxes. The low rates of the Euro brought a housing boom which boosted tax receipts. This is something the Australian states have in common - a reliance on housing sales to raise tax receipts.
The unknown is whether there is more bad news in the UK banking sector. Ireland's banks were going from bad to worse and were losing deposits again. Markets lost trust in the Irish banking info. It could happen to the UK but the UK has more armoury from not being in the Euro.
I am pro-European but I could see the Euro had inadequate measures for controlling debt.
The biggest commonality the two have is an economic interdependence.
Commonalities include a high debt level.
A big difference is that Ireland sought inwards investment through low corporate taxes. The low rates of the Euro brought a housing boom which boosted tax receipts. This is something the Australian states have in common - a reliance on housing sales to raise tax receipts.
The unknown is whether there is more bad news in the UK banking sector. Ireland's banks were going from bad to worse and were losing deposits again. Markets lost trust in the Irish banking info. It could happen to the UK but the UK has more armoury from not being in the Euro.
I am pro-European but I could see the Euro had inadequate measures for controlling debt.
The biggest commonality the two have is an economic interdependence.
Nov 21st 2010, 9:24 pm
#35
Lost in BE Cyberspace
Joined: Mar 2003
Posts: 9,397
Re: Ireland and the GFC
Which is basically unrepayable, like the US debt. This debt works out to 78k for every man, woman and child in the UK. I read somewhere that even if Britain sold every single one of its houses it could not raise neough to pay off this debt.
http://www.telegraph.co.uk/finance/e...8trillion.html
http://www.telegraph.co.uk/finance/e...8trillion.html
All debt becomes manageable when inflation takes off: the repayment becomes smaller by the hour.
The losers are those who have saved or otherwise hold the country's paper.
(I've a wheelbarrow going cheap: tyre OK but slight rusting....)
Nov 21st 2010, 9:42 pm
#36
Recession Surfing 2006 ->
Joined: Sep 2007
Location: Northern Edge of Melbourne
Posts: 1,254
Re: Ireland and the GFC
I really hope one day Ireland rises from this...
Nov 21st 2010, 10:11 pm
#37
FREE TIBET
Joined: Jun 2007
Posts: 18,840
Re: Ireland and the GFC
Anybody really give a shit
Nov 21st 2010, 10:24 pm
#39
Proudly Deplorable
Joined: May 2003
Location: Alloha snack bar
Posts: 24,246
Nov 22nd 2010, 12:25 am
#40
not sure...
Joined: May 2007
Location: out in the boonies
Posts: 1,537
Re: Ireland and the GFC
What pissed me off was the chap on Sky this morning referring to the Irish bailout and relating it to every other story in the news today. His smug tone of voice and grin made me so angry. Like many other Irish people I'm mortified at the utter **** up of the economy in Ireland but there's no need to be smug about the bailout. Britain had to bail out it's banks and they're still screwing people left, right and centre. Get your own house in order before looking down your nose at others thanks very much.
Nov 22nd 2010, 1:29 am
#41
Forum Regular
Joined: Feb 2010
Posts: 181
Re: Ireland and the GFC
I have read all of these posts with great interest---and I feel deep sadness for the people of Ireland who have been left truly in the mire by politicians and bankers alike.
Aspirilla's openning post and the article from the Irish Times;is however,by far the most incisive---please read it in full.Its great advantage is that it is honest;and written by someone who has consistently been correct in his predictions.
There is one additional point I would like to make--this is with reference to the second part of the article refering to residential mortgages.First delete the words Irish/Ireland and insert Australia/Australian.Australia,in many respects[eg borrowing from foreign banks to finance housing boom]mirrors Ireland.If you google unconventional economist[who writes from Australian perspective]you will see what I mean.You have been warned---the questions are;when will the bubble deflate and will it go off with a bang[eg Ireland]or just gently shrink?
Aspirilla's openning post and the article from the Irish Times;is however,by far the most incisive---please read it in full.Its great advantage is that it is honest;and written by someone who has consistently been correct in his predictions.
There is one additional point I would like to make--this is with reference to the second part of the article refering to residential mortgages.First delete the words Irish/Ireland and insert Australia/Australian.Australia,in many respects[eg borrowing from foreign banks to finance housing boom]mirrors Ireland.If you google unconventional economist[who writes from Australian perspective]you will see what I mean.You have been warned---the questions are;when will the bubble deflate and will it go off with a bang[eg Ireland]or just gently shrink?
Nov 22nd 2010, 7:17 am
#44
Lost in BE Cyberspace
Joined: Mar 2003
Posts: 9,397
Re: Ireland and the GFC
What pissed me off was the chap on Sky this morning referring to the Irish bailout and relating it to every other story in the news today. His smug tone of voice and grin made me so angry. Like many other Irish people I'm mortified at the utter **** up of the economy in Ireland but there's no need to be smug about the bailout. Britain had to bail out it's banks and they're still screwing people left, right and centre. Get your own house in order before looking down your nose at others thanks very much.
Ireland elected to join the Euro and take the good and bad things that it entails. For years Ireland has been the recipient of billions of "aid" from the EUSSR - which includes Britain - and has had a boiling economy on the back of it. Now the party's over.
The UK's problems are because of the banks' profligacy. Ireland's are due to the Euro and its one-size-fits-all paradigm. Just why Britain should "help" escapes me - especially when "help" is applied to a basically broken system.
Nov 22nd 2010, 9:06 am
#45
Account Closed
Joined: Jun 2005
Posts: 9,316
Re: Ireland and the GFC
I have read all of these posts with great interest---and I feel deep sadness for the people of Ireland who have been left truly in the mire by politicians and bankers alike.
Aspirilla's openning post and the article from the Irish Times;is however,by far the most incisive---please read it in full.Its great advantage is that it is honest;and written by someone who has consistently been correct in his predictions.
There is one additional point I would like to make--this is with reference to the second part of the article refering to residential mortgages.First delete the words Irish/Ireland and insert Australia/Australian.Australia,in many respects[eg borrowing from foreign banks to finance housing boom]mirrors Ireland.If you google unconventional economist[who writes from Australian perspective]you will see what I mean.You have been warned---the questions are;when will the bubble deflate and will it go off with a bang[eg Ireland]or just gently shrink?
Aspirilla's openning post and the article from the Irish Times;is however,by far the most incisive---please read it in full.Its great advantage is that it is honest;and written by someone who has consistently been correct in his predictions.
There is one additional point I would like to make--this is with reference to the second part of the article refering to residential mortgages.First delete the words Irish/Ireland and insert Australia/Australian.Australia,in many respects[eg borrowing from foreign banks to finance housing boom]mirrors Ireland.If you google unconventional economist[who writes from Australian perspective]you will see what I mean.You have been warned---the questions are;when will the bubble deflate and will it go off with a bang[eg Ireland]or just gently shrink?
