Things Can Only Get Better. 2 Years on, D:Ream were wrong!!

Happy Bailout Birthday!!!

Two years after bailout, we’re in an even worse state, economists warn

Richard Tol, the former ESRI economist was rather scathing

Then he said

On to the ever cheery Gurdgiev:

Eddie Hobbs joins the party a bit late

Things have become more stable, but things have not really improved.
We have several elephants in the room that nobody wants to mention…

  1. BTL’s
  2. Home mortgages that have not chance of being repaid
  3. Public Sector Pensions - we cannot afford them
  4. Private sector pensions - many are insolvent
  5. Croke Park
  6. The Debt Mountain

There are many more issues, these alone are pretty bad, and not getting better.
The idea that when we get out of the bailout everything will improve is plain bonkers.

Our debt is €130bn, tax revenues are about €30bn, how long before the tax revenue does not cover the interest on the debt. The whole state will be am Interest Only BTL.

If the debt was wiped, how long would it take us to get back to where we are now, a decade?
Less?

the more this goes on and the more I learn the less and less inclined I am to purchase a house.

Well it’s all going to come down to the OMT program; it’s obvious that the ECB needs to finance us at something close to the base rate and be willing to do so in unlimited size and forever.They won’t even need to actually do it, they’ll just need to commit to doing it and the market will take it there. Has to happen or it will all end in war so hopefully the politicians and central bankers realise this soon.