Lessons there to be learnt from Finland's bank crisis

Lessons there to be learnt from Finland’s bank crisis

irishtimes.com/newspaper/fin … 33311.html

Interesting articles about Finland’s crisis of the early 1990’s. There seem to be many many similarities with Ireland’s current problems. Cheap and easy credit leading to property bubble followed by rapid turnaround in their fortunes, high unemployment, rapid drop in GDP, banking crisis etc etc.

One important difference: At that time Finalnd was not in the eurozone so they dropped their interest rates and devalued their currency by about 12% - thereby making their exports more competitive. Options that are, unfortunately, not open to Ireland at the moment.

Just wondering would their be a case to be made for Ireland leaving the euro, either permanently or for a few years to straighten things out - maybe returning at some stage in the future?

:open_mouth: Based on current trends 18% unemployment by 2010/2011 is very achievable in Ireland, all it takes is the unemployment rate to rise by about 2% to 3% each month.

Surely not our Comical and Desperate Dan?

They’re not the only ones wading shoulder deep in the Nile

Fast forward to 2008, the government’s been told what’s coming down the line, which they have dismissed.
Is the minister surrounded by ‘yes men’ who tell him what he wants to hear? So far we know he has a poor grasp of the causes of the credit crunch and subprime crisis.

Obviously a doom monger - no doubt he single handedly talked Finland into its recession and banking crisis back in the day…