March 11, 2008 at 5:52 pm #53762
Irish banks may need life-support as property prices crash
Last Updated: 12:48am GMT 11/03/2008
The Dublin government appears to be almost powerless to prevent a severe downturn. Ambrose Evans-Pritchard reports
The Irish banking system faces acute strains and may require a phase of temporary nationalisation as the property slump leads to a wave of defaults, according to a leading Irish economist.
First class article in today´s Daily Telegraph. Ireland seems in as big a mess as Spain , the Eurozone cards are gradually falling down.
I thought Ireland might provide some buyers of Spanish properties,looks unlikely now.
There is no doubt this crisis is going to be around for years.
March 12, 2008 at 8:43 am #79786
no surprises there imho, spain and ireland were always the two countries most likely to suffer first
March 12, 2008 at 10:47 am #79789135yearswaiting wrote:Irish banks may need life-support as property prices crash
Ireland and Spain both took advantage of the low rates for Euros in the boom years.
Now they both suffer due to the doubling of Euro interest rate and the strenghness of Euro.
March 14, 2008 at 2:04 am #79845
Irish banks profits last year was in the Billions of Euro.
Yes, they have written off millions of Euro due to world wide housing debt problems but they are NOT in any kind of financial trouble.
Just because Northern Rock had sub prime problems does not mean British Banking per se is having problems.
House prices have dropped in Ireland by 10% apx during the last 12 months and have now levelled out.
It now appears there may well be a shortage of new houses as 2008 progresses. So say the experts.
However the usual caveat applies to nearly ALL the above because it is based on what so called experts are saying.
One exception to the caveat – the Irish banks extraordinary profits are for real!
Edited to add:
Forgot to say the Daily Telegraph was never a friend of Ireland’s interests.
March 14, 2008 at 8:42 am #79847
@seamus kilcock wrote:
Irish banks….are NOT in any kind of financial trouble…..Forgot to say the Daily Telegraph was never a friend of Ireland’s interests.
To be fair Seamus, the quote “We are going to see banks on life-support with very big bail-outs” came from a leading Irish economist, Morgan Kelly, University College Dublin.
Another quote from the same piece “Look at all the signs: every single one is screaming that the economy is in big, big trouble” was a warning taken from the Irish Independent.
As to Telegraph bias, historically you may have a point, but in this case they appear only to be quoting reliable sources from within Ireland.
March 14, 2008 at 2:31 pm #79870
Thanks for clarifacation. I’m relieved it’s economists that are making said claims. I think it fair to say for every economist that paints a picture of gloom and doom there is another who states the opposite.
The fact is the Irish banks are making billions of Euro profit for m any years including 2007. This is the sort of fact I am happy to accept unlike an economist opinion!
Re my comment on Daily Trelegraph – you are probably right but please allow for the fact we Irish are ‘damned’ with a long historical memory.
Incidentally I bought shares for the first ever time in the two big Irish banks when they were at their lowest recently. Watch this space!
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