The Budget (34)
life aint that simple im afraid. we currently dont have a system to allow a smooth transition for families to do so. if a family is turfed out of their home, where do they go? if alternative accommodation is found immediately, is it close to where they were? if not, how do they re-school kids etc? how does this affect possible extra commuting distances for work etc? all important questions. im sure theres a lot of other important stuff that im not realising to. our housing problem is actually a very complicated and serious problem with no clear solutions or quick fixes, or does it?
Yeah, Ireland needs a proper bankruptcy law, where all your dept are erased but all your assets do to pay off part of your depts. Which would utterly suck, but it's better than being chained to a loan you cant pay off for the rest of your life. it would at least allow you to rent somewhere down the country and start putting your life back together dept free.
I think the basic problem is that Irish politicians see everything in terms of not having people made dependent on the state. They also see the wealth of the country in terms of the property sector and they have done everything they can to get the property sector moving again. Therefore nothing has been done about the fact that in actual fact houses in this country are still massively overvalued, ESPECIALLY around Dublin. The fact is that people feel the jobs are in Dublin so they are crowding into the place.
The fact that there is no proper bankruptcy means that landlord need to keep rents high or else the banks will foreclose on them, because if they lower their rents they are admitting to the banks they can't pay their mortgagees. That's why there are houses sitting empty, and the governments don't want to move on that because if they do they are admitting the property sector isn't recovering.
Personally, moving out of Dublin gave me a far better quality of life and I had more money in my pocket. The best thing people could do for themselves is sell up in Dublin and move down the country. Cheaper rents, cheaper food.
I think the basic problem is that Irish politicians see everything in terms of not having people made dependent on the state. They also see the wealth of the country in terms of the property sector and they have done everything they can to get the property sector moving again. Therefore nothing has been done about the fact that in actual fact houses in this country are still massively overvalued, ESPECIALLY around Dublin. The fact is that people feel the jobs are in Dublin so they are crowding into the place.
The fact that there is no proper bankruptcy means that landlord need to keep rents high or else the banks will foreclose on them, because if they lower their rents they are admitting to the banks they can't pay their mortgagees. That's why there are houses sitting empty, and the governments don't want to move on that because if they do they are admitting the property sector isn't recovering.
Personally, moving out of Dublin gave me a far better quality of life and I had more money in my pocket. The best thing people could do for themselves is sell up in Dublin and move down the country. Cheaper rents, cheaper food.
Sir_T: Yeah, Ireland needs a proper bankruptcy law....
all very good points but again, moving a family really isnt that straightforward. there are many things at play here regarding our housing problem. debt forgiveness all sounds good but since this is how money is created and how banks make their profits etc, debt forgiveness is not really on the table or not in a way that will work for many. its a serious mess. its very worrying actually.
kennyfromdublin: Nothing more than buying votes, stupid to increase Public spending when there is still a large budget deficit. It means more borrowed money and governments shouldn't be borrowing money when It means the debt is passed onto future generations.
I wouldn't get too caught up with this line of reasoning. Debt/GDP ratio is just an illusion. Think about it. Our Debt/GDP ratio is falling now.That's not because we are paying off debt.We are rolling over our debt. It's falling because our GDP is rising.
If debt is used in investments with yield a higher return than the cost of capital, future generations will be better off. In fact, our failure to use debt for these type of investments will make future generations worse off. Your argument falls apart here.
GDP is also a flow variable. Debt is a stock. Technically, the ratio is nonsense.
kennyfromdublin: Which leads to increased inflation that hurts the poorest the most.
Anyway as we're in the Eurozone the Irish Central Bank has lost the ability to print money.
Anyway as we're in the Eurozone the Irish Central Bank has lost the ability to print money.
This line of reasoning is also flawed Kenny. We live in a world where independent central banks have interest rates at the zero bound. A government would not be able to decrease interest rates any further. Also, we have no inflation.
The Fed, the ECB, and the Japanese central bank have also just taken part(ECB and Japan still doing it) in the biggest rounds of quantitative easing the world has ever seen. We are talking in the region of 7-8 trillion dollars here. Still no inflation.
What we do have with this kind of monetary stimulus is lots of asset bubbles. Stock markets are overvalued. Companies, who already have massive cash piles, are overvalued stocks which further highlight issues around the current system. Private investment has simply not taken off. Companies and people who have money are still hoarding it. 1970's economic theory does not answer this question for us.
You should concentrate on issues of productivity, stagnant real wages, the savings glut, the broken monetary transmission, inequality, and population dynamics, if you want to find out what the real issues concerning the world economy are.
Ask yourself this: The Fed are afraid to raise interest rates by 1/4 of a per cent.(from the zero bound) Why is this? You will get quite a few answers if you really look into this question.
The simple idea money up, inflation up, government bad doesn't have any weight.
thanks yeats. always interesting to hear your views. im only scratching the surface with all this stuff. looking forward to kilkenomics this weekend. unfortunately missed out on getting a ticket for Varoufakis
thelad2007: thanks yeats. always interesting to hear your views. im only scratching the surface with all this stuff. looking forward to kilkenomics this weekend. unfortunately missed out on getting a ticket for Varoufakis
Will anyone ask Yanis how he managed to be even more incompetent than previous Finance Ministers? He was completely out of his depth as Greek Finance Minister.
Responsible for
1) The Introduction of capital controls in Greece.
2) Billions in deposits fleeing the Greek banks.
3) Decline in the Greek economy in 2015.
Yeats1980: I wouldn't get too caught up with this line of reasoning. Debt/GDP ratio is just an illusion. Think about it. Our Debt/GDP ratio is falling now.That's not because we are paying off debt.We are rolling over our debt. It's falling because our GDP is rising.
If debt is used in investments with yield a higher return than the cost of capital, future generations will be better off. In fact, our failure to use debt for these type of investments will make future generations worse off. Your argument falls apart here.
GDP is also a flow variable. Debt is a stock. Technically, the ratio is nonsense.
If debt is used in investments with yield a higher return than the cost of capital, future generations will be better off. In fact, our failure to use debt for these type of investments will make future generations worse off. Your argument falls apart here.
GDP is also a flow variable. Debt is a stock. Technically, the ratio is nonsense.
So a predicted Government debt of around 98-99% for 2015 is sustainable in your opinion? Yes, I'm well aware the economy is growing, in 2012 Government debt was around 124% of GDP, thankfully now falling.
Between 2009-14, Capital expenditure was reduced by over 60%, surely It would have been sensible to make deeper cuts to Current Expenditure especially in Social Welfare and the Public sector pay and pensions bill?
kennyfromdublin: surely It would have been sensible to make deeper cuts to Current Expenditure especially in Social Welfare and the Public sector pay and pensions bill?
...and this is where i get really worried. no, no it really wouldnt be a good idea to make further cuts. in fact id be reversing it right away if i had my way. if we keep cutting our public expenditure, the potential mental health melt down would be unbearable for our country. it disturbs me when people think by cutting public spending is a good thing, and we wonder why theres such massive waiting lists in our health service and why our mental health services are buckling! we really dont need to play this game with our creditors! there are options out there for us to potential fund all these things ourselves.
thelad2007: ...and this is where i get really worried. no, no it really wouldnt be a good idea to make further cuts. in fact id be reversing it right away if i had my way. if we keep cutting our public expenditure, the potential mental health melt down would be unbearable for our country. it disturbs me when people think by cutting public spending is a good thing, and we wonder why theres such massive waiting lists in our health service and why our mental health services are buckling! we really dont need to play this game with our creditors! there are options out there for us to potential fund all these things ourselves.
The HSE is hopelessly overstaffed at Administration and Management level, Its a great myth going around that the HSE is underfunded, In fact the HSE could eliminate waiting lists if there financial resources were spent more efficiently eg sack at least 50% of administrators and Management in the HSE.
Also another myth going around is that the HSE is understaffed in terms of nurses, Ireland actually has one of the highest ratios of nurses to population in the OECD, It comes down to demarcation and the entrenched opposition of the Nursing unions to changing work practices.
If the political will was there, waiting lists could be eliminated, instead what we get is more comments like "more money must be made available to the Health services". Health spending was massively increased when Brian Cowen, Micheal Martin and Mary Harney were Health Ministers. It was frittered away and even if health spending was doubled overnight, It would still be largely pissed away.
Having the state involved in healthcare has been a disaster, say what you like about the Catholic Church but the Nuns knew how to run the hospitals.
kennyfromdublin: The HSE is hopelessly overstaffed at Administration and Management level, Its a great myth going around that the HSE is underfunded, In fact the HSE could eliminate waiting lists if there financial resources were spent more efficiently eg sack at least 50% of administrators and Management in the HSE.
Also another myth going around is that the HSE is understaffed in terms of nurses, Ireland actually has one of the highest ratios of nurses to population in the OECD, It comes down to demarcation and the entrenched opposition of the Nursing unions to changing work practices.
If the political will was there, waiting lists could be eliminated, instead what we get is more comments like "more money must be made available to the Health services". Health spending was massively increased when Brian Cowen, Micheal Martin and Mary Harney were Health Ministers. It was frittered away and even if health spending was doubled overnight, It would still be largely pissed away.
Having the state involved in healthcare has been a disaster, say what you like about the Catholic Church but the Nuns knew how to run the hospitals.
Also another myth going around is that the HSE is understaffed in terms of nurses, Ireland actually has one of the highest ratios of nurses to population in the OECD, It comes down to demarcation and the entrenched opposition of the Nursing unions to changing work practices.
If the political will was there, waiting lists could be eliminated, instead what we get is more comments like "more money must be made available to the Health services". Health spending was massively increased when Brian Cowen, Micheal Martin and Mary Harney were Health Ministers. It was frittered away and even if health spending was doubled overnight, It would still be largely pissed away.
Having the state involved in healthcare has been a disaster, say what you like about the Catholic Church but the Nuns knew how to run the hospitals.
id disagree with you on a lot there but apologies i dont have the time to get into this right now. the fundamental problem with all this is our apparent reliance on a private banking system. it is leading us to believe we require it in order to survive and prosper. it even plays some very dirty games in order to protect its investment. id highly recommend research into public banking systems. ellen brown is a good start with research. we have to get the hell away from this private banking system before we self destruct. i ll respond in time
thelad2007: id disagree with you on a lot there but apologies i dont have the time to get into this right now. the fundamental problem with all this is our apparent reliance on a private banking system. it is leading us to believe we require it in order to survive and prosper. it even plays some very dirty games in order to protect its investment. id highly recommend research into public banking systems. ellen brown is a good start with research. we have to get the hell away from this private banking system before we self destruct. i ll respond in time
I don't want to see the Banks fully nationalised, a privately run banking system that lends responsibly is beneficial to the economy.
Do you seriously believe a Nationalised banking system would lend responsibly?
kennyfromdublin: I don't want to see the Banks fully nationalised, a privately run banking system that lends responsibly is beneficial to the economy.
Do you seriously believe a Nationalised banking system would lend responsibly?
Do you seriously believe a Nationalised banking system would lend responsibly?
this is a very difficult question to answer. going on my very limited knowledge on public banking, it seems like theres a difference between nationalised and public banks, and im not sure what those differences are yet. after looking into public banking over the last few months, mainly from ellen brown, im completely convinced this is the way to go. im finding it deeply disturbing how far this private banking system has gone to conceal its global scam and to how far it goes to protect itself. i do believe this system has the potential to collapse our global economic system if we dont change it asap. the public banking system attracts me for many reasons, some of the main points being, that the profits made from the system are directed back into the system and ultimately back into society. the private banking system generally takes these profits, and ultimately places them into the pockets of the richest individuals on the planet. the private banking system engages in high risk investments such as derivatives etc, public banking doesnt. its a more conservative model. unfortunately it looks like when this private banking system goes wobbly the next time, we ll be hearing more about bank bail ins! with our current nationalised system, not only are we funneling public money and resources into stabilizing these banks, i suspect as soon as all is good in these banks, they ll be sold back to the private banking system, and it ll be game on as usual. according to ellen brown, public banks are highly thought of and protected in the many countries and places that they are active. we ve stupidly handed this private banking system control of our monetary systems, this is leading to disastrous problems globally as they are only interested in maximising profits, period.
id be interested to know why you think we should be cutting welfare and other public expenditures?
i do agree with you when you say our public services can be run very inefficiently and many departments are. i will say many private sector industries certainly know how to be more efficient but the main aim of private industries is generally to maximise profits and public sector generally should be about serving the public. these are basically polar opposites and it can be very difficult to find the correct balance in each system. i think we should learn from the private sector on how to run our public services more efficiently, something of which i feel wasnt done very well during this recession, but we most certainly should not privatise our public assets and services. this can and does have catastrophic consequences on a society, by widening the inequality gap etc. was only watching this video last night on the differences between capitalism and democracy amongst other things:
interesting watch
after talking to some public sector works, it looks like we re top heavy. ive experienced the fault of some of these high public earners myself and ive also come across some amazing lower waged public servants as well. i do feel for the lower waged public sector workers. i really wish they were paid more, particularly people in the emergency services. they do an incredible job, many in highly stressed jobs.
im open to correction on anything ive included above and id also be interested in hearing your opinions and any others for that matter. im not sure if ive answered your question but thats where im at.
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im deeply concerned whereby you say ireland lacks repos! very very scary stuff!
I actually think there needs to be repos and anyone that has their property repossessed needs to have the debt written off and start from afresh.
Someone losing their house Isn't the end of the World, society eventually goes on as normal.