CBI ignored warnings from own chief economist

[yoganmahew]

rte.ie/news/business/2016/04 … nk-courts/

Court told Central Bank failed to ‘rein in’ lending

A former chief economist with the Central Bank has told the High Court information and advice available to the bank from the 1990s should have prompted it to “rein in” lending by commercial banks but it repeatedly failed to act.

A section of a draft 2007 Financial Stability Report referring to house prices being overvalued by 39% was deleted at “a higher level” within the bank before it was published, Tom O’Connell said.

The final version of the report said the Central Bank (CBI) expected a “soft landing” in the housing market.

Some interesting information coming out in the trial. Not that I have much sympathy with the INBS directors - waiting to be told they were being bold…

[BoyRacer]

ESRI - Houses overvalued by 15%

Ireland warned property slump looming - IMF

2006 - Central Bank hid property crash forecast

Soft landing predicter gets ever softer landing in Govt