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Wednesday, September 03, 2008

The economy has sphinctered

It's pretty much official now that the economy is not slowing down rather it is closed for business. I did like that an auctioneer in Tuam on the RTe news was saying that there was a need for the building industry to reduce prices drastically in bring people back into the market and then went on to be quoted as saying there as €15 million in new unsold property in the area. Now was that €15 million in terms of the current asking price or should we read that as really being €10 million's worth? Tom Parlon joined in the fun fest by asking for a direct state bailout of construction. Wasn't he in a party once that believed in the free market?

Yes, indeed the Irish construction industry has truly overdone its reaction to the credit crunch or the fiscal trots as some might term it and we're stuck looking at the rest of the economy sphinctering out of sympathy.

6 comments:

mgb said...

I think that particular party turned out to be more of a "we want to be free to manipulate the market to suit ourselves" party, and the usages of the words free and market in that order was just a coincidence.

Celtic donkey said...

I can't believe you're naive enough to think Tom Parlon ever believed in anything! Hello from the IFA to the PDs to the CIF... is there any continuity of belief system there except the Me Fein religion?

Dan Sullivan said...

Me, naive? With my political history? You know this summer and the lead up to the budget reminds me of how many of the Japanese view WWII as this awful terrible thing that happened - to them! It's not like they had an hand, act or part in the war itself. A lot of them genuinely view it as this terrible event that behalf them.

Blaming the credit crunch (which seems not to be effecting very other country as badly as us), is a bit like a bloke caught with his pants down by his missus blaming the gust of wind that caused the door to swing open at just the wrong second at the party.

Katie Harrington said...

It's classic though. When times are good politicians are falling over themselves to take the credit, but when things go wrong it's invariably down to someone or something else - a slowdown in the world economy, consumers aren't spending etc...

THE EMERALD ISLANDER said...

I have lived in several different countries and was involved in politics in two other EU states (not counting Ireland), so I might know a thing or two about the matter. And I am still amazed how many Irish people go to the polling booth on election day with their eyes, ears and mind closed.

What is happening to Ireland now has been building up for at least 2-3 years, but most people chose to ignore it. That includes the banks, the construction industry and many politicians from all parties.
For example: Had Enda Kenny fought his campaign last year on financial and economical matters (instead of running a US-style presidential campaign), he would most likely be Taoiseach now. And even if he had missed it narrowly, as he has, he would have a political leg to stand on now in the battle of arguments.

But as it is, all parties pretended during the 2007 election campaign that the economy was strong and that "we never had it so good". At the same time many analysts - yours truly included - could see problems and the signs of recession building up. And we said it, loud and clear.
Did anyone listen? Of course not.

Well, now we have to harvest what we have sown, and it will be very interesting to see how the sunshine boys in government deal with a long period of heavy rain...

Dan Sullivan said...

I think that if FG and Enda had taken a slightly different tack on the economy it still wouldn't have mattered either last year or now. Irish people dislike being told bad news and always blame the messenger and even worse they dislike being told 'I told you so.' It's a pity but it's true.