European Central Bank raises rates by another 0.25 %

Even more ironic will be when Trichet comes here in the summer to announce the next rate hike to drive another nail into the Irish property coffin.

Expect all the politicians to be calling for Bertie to use the fact that the meeting is in Dublin to intervene even though it will be way too late.

God-damn! I am so glad we are in Europe - otherwise I could see stamp duty cut back and interest rates dropped to stimulate growth - sure the past few years all we have heard is how great the property market has been “performing” and now that its stalled - its a bad thing!

:laughing:

We could well find ourselves in a scenario of deflation where we are suddenly crying out for interest rates of 1% and our hands will be tied by the ECB.

It might be oo late for Bertie as well, the election is in May and the meeting is in June.

Maybe the Anti Stamp Duty coalition of FG/LABOUR/PD will be able to save the day

Very true but wasnt it our own fault!
We knew that when we joined the currency - we should have foreseen the bubble then!

Dunno really but it would be that or a Japanese style mess
15years they were pissing into the wind

:slight_smile:

Indeed, the best thing is for people to vote Bertie in - he made this mess so he can deal with it IMO.

It’s a couple of years too late but we’re finally getting the increases in interest rates that we need to slow down inflation in this country.

With all the nervousness around and with an election looming there is absolutely no way this country would have raised its interest rates today, if it still had the power.

An economic crisis looms and interest rates are to continue rising, against the will of people and politicians here. I can’t think of another example in history quite like this.

We are in uncharted territory. I am fascinated but I can’t help feeling scared for some friends of mine that are in deep doo-doo now.

Jesus H Christ! - People ask me why Im getting more and more disinterested in the forthcoming election and am seriously considering voting for the craziest most far out candidate on the ballot - I will tell them to look at the above post.

Lordy - Why in gods name do Labour have Joan Burton as their finance spokesperson? - over the last year she has come out with some stuff that has convinced me that even Kim IL Sung had a better understanding of how capitalism and the free market work. Where the hell is Ruairi Quinn? Yet another reason why I simply can’t take Labour seriously as a part of a future government.

Wakey Wakey Folks - We (Ireland Inc) are 1% - yes 1% of the Eurozone Economy - We are a pimple on the backside of the European Economy - We do not count - the best we can do is make the painful adjustment to run our business cycle on the same as Germany. Nobody in Frankfurt gives a rats ass about Irish mortgage holders and credit junkies and nor should they - the rate is decided in the best interests of the European economy as whole - as soon as we come down from our property fuelled credit high , we will understand that too.

The entire Irish political establishment , including Burton and McDowell , signed up and canvassed for the adoption of the single currency - the current situation was highlighted as a potential by the NO supporters and other observers - so they can’t say they weren’t warned - Didn’t hear Labour giving out about the dangers of the insanely low interest rates a few years ago - Its a bit rich giving out now that the pendulum is swinging the opposite way. Yet another reason why it is so hard to take the current incumbents of Dail Eireann seriously.

As for that Fine Gael Chancer on the magic miracle of cure-alls, Stamp Duty - Two Words - Populist Muppet!

On that note of absolute disillusionment - need cheering up - off the watch the US congress on C-Span - at least they actually have a real opposition , and one that comes across as at least having thought about what they are going to say before they say it (the junior senator from Mass. excepted!)

Mr. Austin Hughes, Chief Economist of IIB Bank, part of a major European financial services group, the KBC Group (one of the Worlds Top 50 Banks), which is headquartered in Brussels, has, this evening (around 17:40 to be precise) on national radio (Today FM) when asked by the presenter Matt Cooper;

MC: “Why has the ECB raised rates?”

AH: “Because they can”

Damn, and I though economics was complicated!! Yozzer Hughes springs to mind … Giz a job, I can to that, Go on Giz, Giz a job!

:unamused:

Blue Horseshoe

Flash, if, today were were not part of the Euro, our interest rates would have been raised a long, long time ago to stave off the poperty bubble we now see. WE NEED A HIGHER RATE to reflect the reality of the market here. In truth, if we held control of our own rates the likleyhood is wholesale rates would most likely be between 5 and 6% today.

The sad reality is, that Ireland ltd is a small and mostly insignificant compontent of Europe PLC. Our plight does not register on the radar of those in the ECB, nor should they, no more than when we had our currecy the economic position of Innismore affeced the Irish Central Bank.

Blue Horseshoe

Good to hear from you Edo!

I’m afraid I’m inclined this way too - that is, voting for the loony party. If anything, the Irish people will be taught a much-needed lesson for the future by allowing the loonies in for a while.

The day I vote for Labour is the day hell freezes over. This is solely because of my pro-life stance :slight_smile:

I agree the amount of flapping and headless chicken impressions will no doubt sky rocket in the coming months. Clueless :frowning:

Good post Ed. I’m a bit of a CSPAN junkie too!

I don’t believe that. Mary Harney would have had her other half nagging at her complaining that the cost of finance to Business was too high.
Bertie is still in denial that there is a housing crisis.
The property developers still would have been lobbying against any anti-property policy and putting up mortgage rates would have been in their view anti-property.

Anyone for the last of the t-shirts!!!:stuck_out_tongue:

If we weren’t in the Euro you would have expected rates to be much higher than they are but I think it is correct to state that the political pressure from the Duce of Drumcondra et al would have been quite intense. This place is so small that it would have been hard for the central bank to rebuff them as the chances of lucrative work in the private sector would have been ‘restricted’ after they left the CB

have to disagree with you there…

central bankers are always highly desireable to profit making banks…

and in fairness central bankers are fair and impartial, most of them are looking for international credos whihc is only available from their peers…look at greenspan, an extreme example but still applicable.

Under legislation, the govenor of the central bank is immune from the legislate and answerable to no one, totally above the political influence, which is a must…

the governemtn can’t fire him or question him, it’s something akin to what the judges have, total independence.

Only thing is that Ireland is a non entity when euro wide weightings are taken into account, mr hurley is only small fry…

Isn’t withdrawal from the Euro guaranteed to destroy our status as host to so many lucrative US subsidiaries?

The very rationale for their presence here is that there’s no language barrier with home; no currency barrier with their primary EU markets (Spain, France, Italy and Germany), and low corpo tax.

If we lose the Euro membership, there’s no good reason for US businesses not to up sticks to Estonia, which has zilch corpo tax and far lower wages and property costs.

And its currency is pegged to the Euro so it is nearly a euro proxy, on the other hand if we left it would presumably be so that we could devalue