Austin Hughes Again

irishtimes.com/newspaper/breaking/2008/0925/breaking36.htm

An there was me thinking it was the property bubble that caused it all. It obviously has nothing to do with construction activity falling off a cliff. Wow. I should have gone to the same “economics” school as Austin.

FM

I think Austin neglects to mention that the lack of confidence shown by Irish consumers reflects the lack of confidence shown by IIB bank (and the other banks) in the ‘sound fundamentals’ of the Irish economy. :nin

Nothing to do with the exceptional number of High Court eviction cases IIB took. Good !

Hey austin, I just took your little fridge magnet economics report and gave it to a four year old and this is what he came up with:

a sharp weakening in economic growth was the main negative influence on consumer spending between the first and second quarters.

Spooky huh?

-Rd

He’s spreading himself about this week…

Didn’t I put this self same argument in a post last week? Bugger, does that mean I’m Austin? :open_mouth: and so’s my tractor? :open_mouth: :open_mouth:

edit: I do agree with the bearded one on this. Irish inflation figures on transport, shelter, food, home heating/utilities, health, credit and education have risen far more sharply than the headline figure indicates. These constitute the majority of the household budget.

yoganmahew wrote :
Didn’t I put this self same argument in a post last week? Bugger, does that mean I’m Austin? :open_mouth: and so’s my tractor? :open_mouth: :open_mouth:

He’s a lazy incompetent and misleading cheerleader, so i wouldn’t be surprised if he lurks here and lifts what he needs. I cant believe that him and Desperate Dan have got away with so much over the years and have not been taken to task. Both they and their employers should be investigated and jailed but I wouldn’t count on it in this country.

Uhem.

Why did consumer spending weaken?

Because unemployment is rising.

What sector is most affected by rising unemployment?

Construction.

Why, therefore is consumer spending weakening?

Because one of our biggest earning economic sectors in the past 6 years has sharply fallen in recent times.

Is weakening consumer spending the problem?

Nope. It’s a symptom of wider problems.

Meh,
Why did consumer spending weaken?
Because consumers have no credit left to get themselves into debt buying big ticket items like cars and houses.
This happened before the increase in unemployment. The stand-off began in early 2007 before the credit crunch. Everything else is a symptom of the willing consumer being tapped out. The unwilling consumers (who do have cash) are still on the sidelines looking for value. It’s not any different to the US.