Hearing all about it's financial problems in the news, but how did it happen? What is going on there, I thought it was a financial beast in the last 10-15yrs..?
Grish said:Thanks for the news sites Oph. I have most of that knowledge in Canada, listening to the news everyday.
As I understand what happened, is that:
1) Ireland had a low corporate tax rate, encouraging companies to set up shop there
2) This created a boom situation as corporations were doing business there, funnelling money to the country.
3) It inflated property prices
4) The bankers were friendly with the builders/property developers, and lent out too much money
5) The bubble burst, banks had loans out they couldn't collect on, liquidity was compromised, and that loss of liquidity due to bad loans to property developers caused everything to cascade
6) Now the government is paying off bank loans to prevent collapse, thereby putting the burden on the people
Is this right?
Mr Saturday said:This might help explain the situation in Ireland. Imagine Ireland is the guy at the poker table who is down to his underwear after failing to quit while he was ahead and is now boned. The casino offers to cover his next bet, but at an insane interest rate. He then produces the deed to his house as collateral...
Pietr Von Carstein said:1)12.5% I think which will not change .
2)Most of the money supposedly coming in was not real , whatever that means its just something I've heard said .
3)By a lot .
4)Everyone in power are more or less best mates meaning bankers , politicians and developers .
5)The property bubble generally bursts when no one can afford it .
6)Yep and I heard somewhere , I think it might be one of my doomsaying teachers , that I'll only be done paying off the debt by the time I'm in my forties
Get of W said:I'm just glad I moved to England for Uni rather than staying in Ireland and going down South.