Monday, November 22, 2010
It never seemed to matter in the boom years, but strictly speaking, there is no such thing as a Celtic Tiger. The image was coined in the mid-90s to compare Ireland with voraciously expanding economies in east Asia.
Now that boom has turned to bust, and Ireland is negotiating a European bailout, the mythical nature of the beast is poignant. There were no big cats in Dublin after all.
But there were fat cats. The Irish boom saw a vast property bubble puffed up by appallingly managed banks with the complicity of idle regulators and political cronies. House prices between 1994 and 2006 rose by around 520%. The relationships between developers, their financiers and the officials who authorised the building spree were usually cosy, often corrupt.
Towards the end of the growth years, the country's financial sector descended into full-blown mania. Banks doled out credit indiscriminately and borrowed on international capital markets on a scale that far exceeded the nation's economic output. When the bubble burst, the government stepped in to rescue the banks, but their debts were ultimately bigger than the state's capacity to raise revenue. Ireland started sliding towards insolvency. Hence, the bailout.'
And it is not only the Irish that are being betrayed by their leaders. George Osborne announced that even though we weren't obliged to help in the bailout of the Irish Banks that he would give them £7 Billion of British taxpayers money as they were good friends to Britain.!!!!!
Support the Run on the Banks on the 7th December 2010. Just go down to your local bank and take out your money before the bastards give it to someone else!!!
Posted by DotConnector at 11:45