Thursday, January 28, 2010

Not DeFault of Bertie and de Brians at all

We posted a link a while back to Morgan Kelly's analysis of the economic state of the BaNAMA Republic.

Now a story from Dara Doyle at Bloomberg refers to Kelly's report, and to the number of mortgage default cases being heard in the High Court in Dublin. The CEO of the EBS reckons there's a 25% chance of another wave of mortgage arrears, and the ESRI estimates that 30% of mortgaged homes are already in negative equity.

Note the judge's remark to one defaulting homeowner, a party to one of sixty such cases before the court that day: "you will appreciate that when parties enter a legal arrangement, if someone loans you money, you have to pay it back."

Yeah, you have to pay it back unless you're a bank or a property developer in which case the taxpayers will pay it for you.

And then the taxpayers will be so cash strapped by paying your debts that they'll end up in court for not paying their own debts.

And then you can take their homes away from them.

Oh, and when the banks are nationalized you can take their pension funds away while you're at it.

The global economy is beset by uncertainties, financial markets are highly volatile and the construction sector domestically is experiencing a slowdown. However, we must not lose sight of the fact that the fundamentals of the economy are still good — a point often lost by some. … Over recent months, the dynamics of the housing market have changed fundamentally. A natural and welcome slowdown in property price inflation…
Brian Cowen, 5 December 2007

The dislocation caused by international economic turbulence will be limited, and will not deflect us from the strategic course on which we have embarked. Workers whose real incomes are protected by the budget, businesses whose commitment to development through moving up the value chain by a greater reliance on research and development, towns and regions that are planning for a new and strengthened role under our commitment to regional balance, educational institutions that seek to meet the needs of the students of today and tomorrow, families with caring responsibilities and communities seeking to look after their older people, their children and those with disabilities, can all see that their needs and efforts are being supported by the Government through the very balanced and progressive measures in the budget.
Bertie Ahern, 6 December 2007

Nice one, lads.

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