Ferdia2010's Weblog

Gerard's blog

Government Admits making “Mistakes” ..

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Well holy cow, an Taoiseach Brian Cowen finally admits the Government made mistakes that contributed to the economic “crash”.

With nearly half a million people unemployed (from a population of 4.3 million) and the National debt tripled to about €160 billion (including Nama). All I can say is Gosh, would we all be allowed to make mistakes like that .. I doubt  that very much. I am sure if any employee preformed in such a manner they wouldn’t have a job for long. We are stuck with Fianna fail for 15 years, then again who in the heck voted for them.

Just to quote part of the Bacon report which was commissioned in early 2000 by said Government, which even back then was warning of the possibility of the property bubble busting

5.5.8 Anti-speculation Property Tax
The housing market is attracting speculative demand. In some cases, this takes the form of individuals taking a view about prospective house prices and buying residential property, as opposed to another form of investment. In other instances, speculative demand takes the form
of a transitory increase, following from demand being brought forward, so as to avoid expected future price increases. These various kinds of speculative demand forestall the movement of the housing market to stability. As this happens, there is a tendency to stimulate further speculative demand and in this way a ‘bubble’ can develop.

If allowed to develop unchecked, such a process has the potential capacity to threaten overall stability of the market.

However, it is considered that expectations of future returns from housing market speculation should be supported through the introduction of an annual tax on dwellings, which are not principal primary residences.

So the Government knew all about the dangers of the bubble bursting, but did little about it.


Written by ferdia2010

May 14, 2010 at 10:58 pm

Posted in Ireland Political

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