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Why is Bertie not Worried About Property Prices?
Read more about: Economy, Fianna Fail, Fine Gael, Government, Labour Party 
He appears to be the only one of the commentators out there not worried about the rate of increases in property prices. We all know this since we all read the papers in disbelief. I say disbelief not because he may be wrong but I suspect Governments job is to be worried about all sorts of eventualities and prepared for them. He seemed too relaxed and nonchalant in the face of some pretty dramatic rises in prices and pretty bad news on other fronts.
I am no economist but if people on big morgatges are being asked to pay more interest on loans the runaway prices may come back to earth a little and the value of other loans become onerous etc etc. Economists may want to plug in here and correct me if I am being overly pessimistic.
My point in this post though, arises from a cast-away remark by John Downing of The Star on Today with Tom McGurk (in for Pat Kenny) on Radio 1. He reckons that a downturn in the general health of the property market and broader economy ought not worry Bertie at all. The reasoning being that in a situation of economic downturn there is less likelihood of the electorate fancying uncertain change in Government and adopt an apronstrings mentality. So Bert would be saved by worry and uncertainty generated by a downturn.
Its an interesting thesis and one which also gets advanced as an argument for Gordon winning in the UK in 2009 whether his golden rule stands or not. If there is a downturn economically the electorate will favour incumbents and stability over uncertainty and change. That is unless the downturn is drastic and quite clearly the fault of government policy. Any takers in FG or Labour for that argument?
Opposition parties and business groups expressed some disquiet over the March inflation numbers, with most calling on the Government to do more to ensure that short-term price pressures do not become embedded in the economy.
Ibec called on the social partners to avoid being “blown off course” in partnership talks by short-term upward inflationary influences.
Fine Gael finance spokesman Richard Bruton said Government-controlled sectors still make an “enormous” contribution to inflation.
Kathleen Lynch, the Labour spokeswoman on consumer affairs, also castigated the Government for failing to address the “underlying factors” leading to inflation.
Yup, yup there are.
Interesting but does not contradict Fianna Fail doing so well last time due to the strenght of the
economy
No it certainly doesnt, and on the logic of above there is no way to beat an incumbent. I would say that there is only a 50/50 chance or perhaps worse of an electorate taking this tack toward a government. Irish people often feel they know where blame lies and take no prisoners in ecacting punishment. Call it our catholic heritage
Interesting points made there.
Personally, I think that if the government were serious about house prices, they would abolish stamp duty straight away.
They could also relax the zoning laws.
The big Builders,stupid,……Berties money- bags.
The Golden Circle again.
W,
Interestingly, the consesnus view is that reductions in stamp duty would add to house prices not reduce them. as the market operates to extract the highest possible price from buyers. Do you feel that tighter regulation of mortgage lending should be attempted or would it be better to let the market rip? After all, house prices are at the level they are at because buyers and their mortgage lenders in the market are driving prices.
Stamp duty should remain but allowed people to write off solar panels, better insulation etc off it.
The Bert has put his job on the line by stating that the explosion in house prices is largely irrelevant, in the context of Ireland’s prosperity.
The people of Ireland are earning enormous sums of money, as witnessed by the Revenue returns.
So, to that extent, he is correct.
There is, in his opinion, no problem.
There IS a huge amount of money out there.
There is ALSO a huge amount of Debt out there — almost €280 billion!
So, my feeling is that he should be voted back into office to account for his profligacy.
We’ll wait to hear his excuses when the whole economy goes pear-shaped, probably in 2008; when the euphoria of the SSIAs has evaporated & the roads are clogged with even more SUVs; BMWs & Ferraris; WHEN petrol is €2 per litre, and the Banks begin to call in the Bad Debts.
Taxes will shrink; services will shrink in sympathy; the unions will moan & ask for even more support.
And De Bert, their bestest friend will have to deliver.
And there is only one source — the private sector. The people who have created the Celtic Tiger by their hard work.
Not the public sector, featherbedded by the preposterous, meaningless Benchmarking and guaranteed top hat pensions — all paid for out of the tax yield from the productive sectors of the economy.
Watch out in 2008 for a series of gloomy forecasts; soaring union demands; shrinking profits.
If The Bert does what everyone thinks he will do to stay in power, we will see Sinn Fein/IRA in a coalition & the imposition of a raft of Marxist policies, all based on the redistribution of the earnings of the private sector workers, much like those imposed by Comrade Gordon Brown in the UK.
Welfare will increase on the back of high personal & company taxes.
US companies will depart to a more enlightened State – and there are many who have introduced flat rates of tax & have an educated workforce. In time they will all speak English and any leverage we enjoyed will evaporate & we will revert to Third World Status once more and The Bert will probably feel that his policies are being true to the legacy of de Valera.
It would be manifestly unfair if an alternative Governmant was elected to try & sort out the mess wrought by The Bert & Fianna Fail.
And his comrades in the trade union movement.
And “movement” is an amusing description of a body of self-absorbed parasites, who have no idea of timeliness or productivity, led by the bloated & overpaid Beards & Sandals, who talk the talk, ably abetted by Sean “Dignity” Healy – a well meaning fool who should be hearing confessions instead of meddling in affairs for which he & CORI have neither training nor understanding, merely an emotional knee-jerk reaction.
God Help Us.
IT LOOKED SO GOOD; SO PROMISING A FEW YEARS AGO, BEFORE GREED TOOK OVER.