Sunday, November 28, 2010

Where we are so far...

The problem really with the banks was their criteria, or lack there of, of lending money. People were being offered loans regardless of whether they were eligible. Years ago you could only get a mortgage at 2x or 2.5x your salary but now the banks were giving mortgage at 4x and 5x times your salary. AIB and Bank of Ireland, the two biggest banks in the country knew they couldn't or wouldn't be allowed to fail, because the Irish economy would be unable to function.

That is why the Irish Government said they would cover all the bad debt in the country, just to make sure these banks did not fail. But what they were not counting on was the property developers. Millions, even billions of euros was pumped into the market, and with it rose the amount of unsecured debt in this country.

But its not completely the banks fault, is it?

What about the estate agents that were valuing the houses on the market??? Were they irresponsible or careless in their responsibilities of valuing houses in the way they did? Were they being speculative  ??

People are calling for the Government of Ireland to resign - but do they know what the others can offer. It is plain and simple. All parties should be publishing economic stimulus manifestos and outline in it their course of action and set down exactly how they are going to deliver it.

Thursday, November 25, 2010

Introduction




I have often thought why do people write blogs. Then I watched a movie about a blogger. So I thought, why don't I try it? I have decided my purpose for this blog will be to look at Ireland's economic recovery.