The pressure seems to be increasing on the Irish economy, amid signs that the country may be heading for a Greece style bailout, much to the chagrin of the Germans, who are frankly fed up with having to help the basket cases that they are lumped in with in the EU.
The Irish economy and people benefitted more than most from entry into the Euro, as house prices went through the roof. In Spain, it seemed that for every Brit buyer, there was an Irish buyer, quite extraordinary given the relative population sizes. Of course, lots of these Irish people that had taken equity out to buy in Spain and elsewhere, are now in negative equity at home, or having problems making payments, so there will be a likely knock-on effect on their holiday homes and investments in Spain, with Spanish mortgage payments likely being secondary in importance to the Irish mortgage for their main home. Given that the Spanish economy has stalled again, it's a double whammy that one of the nations that was so enthusiatic about investing in Spain is in so much shit too.....
Friday, November 12, 2010
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