I had someone telling me in the last day that they could swing a mortgage at 5 times their salary and they’d get a loan from family members for the deposit.
I believe the loan book of banks is as fundamentally unsound as it was back in 2008 except lesser exposure to developers and the poor loans(which are currently being serviced) are now mostly home loans which are presented as prime loans when they are anything but.
I believe the issue of property prices and banks being of systemic importance has not being addressed and with a drop in property prices and hiccup in the world economy we’d see Irish bond rates spiking again.
The only reason that Ireland isn’t completely sunk is because the global economy(thanks to blood transfusions at the expense of the donors) was fairly strong since 2010.
I don’t think current government can take credit for this beyond not being as completely incompetent and corrupt as those who proceeded them.
Can financial problems in AIB or BOI drag down Ireland again; I think they can.
Are AIB and BOI digging themselves further in to a financially preacarious situation of their own making; I think they are.