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BOI less than 1 euro per share
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Captialise the banks. Of course Minister Mary Coughlan ruled this out last week.0
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is it a good buy at this price?0
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At the current rate of decline, a classroom full of next years communion kids could pool their communion funds and buy BOI!
Interesting week ahead...
Especially because by next year there could be 200 kids in the room.
The amateur in me says its a good time to buy them now, that they won't be allowed to drop much further. Why do the experts think they'll fall further? Won't the stability factor of the state guarantee kick in, effectively making the euro mark pretty much as low as it will get?
Sorry if I'm completely wrong, I'm still trying to figure the shares/stocks out.0 -
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When(I don't think it's a matter of if anymore) the banks are recapitalised the existing shares will become basically worthless. Assuming the government decides to recapitalise to pre-crisis levels then the current shares will form only one sixteenth of the new share pool and the that the banks will not be allowed to issue dividends on ordinary shares they don't seem as much of a steal.0
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would be a long term investment (5-10 years) imo0
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Who's "not going to allow them to drop much further"?The amateur in me says its a good time to buy them now, that they won't be allowed to drop much further.
It's pretty simple. There's a reasonable chance that Bank of Ireland are insolvent. A government bail-out will not be for the shareholders, it will be for the public. If the government intervene, you will almost certainly lose money if you have Bank of Ireland shares.0 -
The Economist wrote: »It's pretty simple. There's a reasonable chance that Bank of Ireland are insolvent.
Where are you hearing this ? They say they are solvent and indeed just posted over €650m in profits.0 -
On what does one base a reasonable chance that BOI are insolvent?
Thats crazy talk in my opinion.
They are funding businesses as per usual at the moment,just not those directly related to the downturn
Insolvency means they cannot meet their commitments which is crazy talk.They were always worth less in terms of share price that AIB (though obviously not only a third their value).
This latest price fall has been due in the main to the pension funds [and others] selling as they need shares that pay dividends.
Thats a loaded statement.If the government intervene, you will almost certainly lose money if you have Bank of Ireland shares.
Theres no certainty in losing money in a long term investment especially in my opinion with one of the two main banks in Ireland.
Re capitalisation via the government should it come (and it probably will) will be a short term thing.The UK Government for instance expect to sell their shares in their banks for a profit.
If one thinks a bank is doomed to making little or no money (which a Sub 1 euro share price in the Irish Economy would suggest and which is the implication of the statement of certainty as regards losing money on them) forever and a day,I'd suggest attending the same counsel that Jack O'Connor of Siptu does [who was ranting on 5-7 live yesterday in leftist pseudo communist speak about the collapse of neoclassical capitalism] as one would be in good company...bad company in my opinion but good company to share those thoughts with.
Of course over the next 2 years not much is to be made on bank shares,they are a buy in my opinion if you have the money and don't need it soon regardless of whether they go down some more in the short term.
They will recover.
Saying they will recover in my view is a sounder statement than saying with certainty that people will be doomed to lose money on them.
People will of course lose money on them if they are stupid.
Three definitions[there may be many more] of stupid immediately come to mind in terms of my two posts here on this subject :
1. If you need the money you are using to buy them for something else in the near future.
2. If you sell when the price is falling/you don't hold onto them for the guts of at least 5 years.
3.You borrow money for to buy them-as doing so suggests that you have no ready cash to punt on them ergo you might need that borrowing capacity elsewhere in a shorter time than is required to see your investment grow enough to give you a return over and above funding the loan.0 -
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When(I don't think it's a matter of if anymore) the banks are recapitalised the existing shares will become basically worthless. Assuming the government decides to recapitalise to pre-crisis levels then the current shares will form only one sixteenth of the new share pool and the that the banks will not be allowed to issue dividends on ordinary shares they don't seem as much of a steal.
What on earth are you talking about may i ask?
If the banks are recapitalised using pref shares the shareholders base remains intact.
If the banks are recapitalised using a bond loan scheme as used in Germany the shareholders base remains intact.
If the banks are recapitalised by selling assets like AIB will probably do the shareholders base remains intact.
The only way the shareholders will lose out is if the government takes a full
shareholding the in the banks which they definitely do not want to do as they
are in enough trouble without bad debts from property developers on their balance sheets.0 -
The Economist wrote: »Who's "not going to allow them to drop much further"?
It's pretty simple. There's a reasonable chance that Bank of Ireland are insolvent. A government bail-out will not be for the shareholders, it will be for the public. If the government intervene, you will almost certainly lose money if you have Bank of Ireland shares.
For crying out loud mate you are a mod here and you are posting this bull****.
Honestly you should be banned for this. That is just reckless and downright false.
Stop talking crap please :rolleyes:0 -
For crying out loud mate you are a mod here and you are posting this bull****.
Honestly you should be banned for this. That is just reckless and downright false.
Stop talking crap please :rolleyes:
They are obviously not insolvent, but they cannot continue in business as a bank without having funds to lend, and at the moment, they are not just shut for business with regard to certain businesses, they are not lending to any business. Someone above made the point that they had only stopped lending to businesses effected by the downturn. Every business is effected now, it's not just effecting property, every business out there now is cutting back and dealing with smaller sales.
Also, they will have to provide for bad debt on property which they have yet to write down and provide for. When a number is eventually put on the hugely devalued land banks that are currently being used as security for loans to developers that are being defaulted on, 650 Million in profits will seem like very small change. There's a day of reckoning coming along here, the likes of what we haven't seen before with the banks, they are rolling over interest on huge loans in the hope that tomorrow, when they open the Irish Times, the headline will be that property prices are on the way back up again, the whole thing has turned into a game of bluff between the banks, the developers and people purchasing a property. If they can't afford to pay a dividend, I think it is because they are carrying/rolling over some huge loans for developers, that have to be paid back to the wholesale bank. These loans are basically "on hold", with no repayments being made on them, being carried by the bank, eating into profit because the loans are that big that the banks are literally afraid to send in the receiver. This is all going on before we even look at the losses that will ultimately have to be set in stone when the receivers are eventually sent in, to sell property that is down 40-60% when compared to the loan value it is securing.0 -
I just want to make this point as well, that the longer that this situation is allowed to prevail, the more we are going to suffer.
Cowen is not reacting to what small businesses are saying, which is that there is now no credit available for growth or to bolster up cash flow. If you have a quiet week or two weeks now, you could literally be looking at closure. This reaction, or complete lack thereof, from Cowen, is fully consistent with how he has handled everything since he got the job, failure to act within a proper time frame, or at all, as is clearly the case here.
The best thing the government could do is instead of recapitalising the banks, lend the money directly to small businesses and compete with the banks. What is going to happen, as we've seen with the bank guarantee, is that they will be recapitalised and just use the injection to continue rolling over huge loans they have given to developers, who are unable to repay.
The bank guarantee has done absolutely nothing to help businesses in this country, Biffo and Brian have given the title deeds to Paddy's Green Shamrock Shore to the wholesale banks in order to prop up Irish banks and it hasn't made the slightest bit of a difference on the ground, which must prompt the question, was it worth doing at all then???
The recapitalisation when it comes around, is going to be more of the same. I don't know what we are expecting when we have a Barrister as the Minister for Finance and a Solicitor running the country, two professions that would know as much about getting value for money as the orangatangs down in the Phoenix Park.0 -
I can tell you for a fact that your statement regarding BOI not doing new lending is incorrect.You should stick to Facts rather than fiction.they are not just shut for business with regard to certain businesses, they are not lending to any business. Someone above made the point that they had only stopped lending to businesses effected by the downturn. Every business is effected now, it's not just effecting property, every business out there now is cutting back and dealing with smaller sales.
Roughly 90% of Banking customers,based on that analysis rant,they make no money on ...which is utter rubbish.Also, they will have to provide for bad debt on property which they have yet to write down and provide for. When a number is eventually put on the hugely devalued land banks that are currently being used as security for loans to developers that are being defaulted on, 650 Million in profits will seem like very small change. There's a day of reckoning coming along here, the likes of what we haven't seen before with the banks, they are rolling over interest on huge loans in the hope that tomorrow, when they open the Irish Times, the headline will be that property prices are on the way back up again, the whole thing has turned into a game of bluff between the banks, the developers and people purchasing a property. If they can't afford to pay a dividend, I think it is because they are carrying/rolling over some huge loans for developers, that have to be paid back to the wholesale bank. These loans are basically "on hold", with no repayments being made on them, being carried by the bank, eating into profit because the loans are that big that the banks are literally afraid to send in the receiver. This is all going on before we even look at the losses that will ultimately have to be set in stone when the receivers are eventually sent in, to sell property that is down 40-60% when compared to the loan value it is securing.
It of course assumes that banks are stupid.
Flakey assumption that.0 -
Deleted User wrote: »I can tell you for a fact that your statement regarding BOI not doing new lending is incorrect.You should stick to Facts rather than fiction.
Roughly 90% of Banking customers,based on that analysis rant,they make no money on ...which is utter rubbish.
It of course assumes that banks are stupid.
Flakey assumption that.
I know that the people I'm talking to on the ground are of the opinion that BOI is not lending at the moment to businesses. To say that they haven't lent to a single business is of course not true, but the point I'm making is that there is a huge inconsistency between what the reality on the ground is (that they are not lending and this is what anyone who is running a business is seeing), and what they are stating on the public record through the Dail PAC. This is a fact, not a fiction. Maybe your not running a business or in daily contact with people who are running businesses and therefore not in a position to know what the actual situation is. They will lend if you are in a position to secure the loan with 100% cash security. If you have 100K in a cash security, and you want a 100K loan, of course they will lend to you, but you have exactly what you started out with, 100K! If you want a 200K loan and you have 100K to put up to secure it, no can do. That's the situation on the ground.0 -
I can state as fact that they are responsibly lending mortgage finance at the moment and am aware of plenty of new business loans that they are giving out.
To be honest with you theres a lot of shoite being put about by lots of people 10% of which might be true and I say might.0 -
They are obviously not insolvent, but they cannot continue in business as a bank without having funds to lend, and at the moment, they are not just shut for business with regard to certain businesses, they are not lending to any business.
What you have just said is wrong. Because a banks Tier 1 isnt high enough
doesnt mean its insolvent, they are completely different issues. No Irish bank
has ANY liquidity issues. They are practically soverign entities for crying out
loud. If they are having liquidity issues, then every single bank in Europe are
having worse problems as no other banks have the clout our banks have in
the debt markets. Completely baseless argument and one that is totally wrong.Someone above made the point that they had only stopped lending to businesses effected by the downturn. Every business is effected now, it's not just effecting property, every business out there now is cutting back and dealing with smaller sales.
To be honest if i was a shareholder i would be more than a little pissed off
if the banks handnt reigned in their lending. Lending has definitely slowed
but its hasnt completely dried up.Also, they will have to provide for bad debt on property which they have yet to write down and provide for. When a number is eventually put on the hugely devalued land banks that are currently being used as security for loans to developers that are being defaulted on, 650 Million in profits will seem like very small change.
Irish accounting practices do not allow provision for future bad debts.
What would you like the banks to do, ignore the regulator and take your advice?There's a day of reckoning coming along here, the likes of what we haven't seen before with the banks, they are rolling over interest on huge loans in the hope that tomorrow, when they open the Irish Times, the headline will be that property prices are on the way back up again, the whole thing has turned into a game of bluff between the banks, the developers and people purchasing a property.
Ok how about this for a scenario so:
Banks force all developers to value their properties at the present values.
Bad debt figures are computed using asset prices in a firesale environment.
The construction sector collapses completely and bad debts hit astronomical levels.
Every bank either goes bust or is forced to be fully nationalised.
The astronomical bad debts are then forced onto the government balance sheet.
There are no banks left, liquidity completely leaves the system and the country is broke.
Debt goes through the roof, unemployment soars above 50%, we are kicked out of the EU and 20 years of stagflation begins.
That my friend is exactly what the idiots who call for the banks to fully
price all their assets right now are actually looking for and they dont know it.
People who dont fully understand what is going on should really stop making
ludacris calls when they havent a clue what the implications of these calls will be.If they can't afford to pay a dividend, I think it is because they are carrying/rolling over some huge loans for developers, that have to be paid back to the wholesale bank. These loans are basically "on hold", with no repayments being made on them, being carried by the bank, eating into profit because the loans are that big that the banks are literally afraid to send in the receiver. This is all going on before we even look at the losses that will ultimately have to be set in stone when the receivers are eventually sent in, to sell property that is down 40-60% when compared to the loan value it is securing.
Ever think they might be withholding the dividend as part of the government bailout ? :rolleyes:I just want to make this point as well, that the longer that this situation is allowed to prevail, the more we are going to suffer.
Cowen is not reacting to what small businesses are saying, which is that there is now no credit available for growth or to bolster up cash flow. If you have a quiet week or two weeks now, you could literally be looking at closure. This reaction, or complete lack thereof, from Cowen, is fully consistent with how he has handled everything since he got the job, failure to act within a proper time frame, or at all, as is clearly the case here.
We would have no banks or else we would be in the absolutely screwed
situation that the UK are in after destroying their banking system, if we
had taken quick and knee jerk action ala Gordon Brown
The banking guarantee was a credit to this government despite the disgrace
of a budget that followed thereafter.
Failure to act within the proper timeframe? What are you talking about.
They definitely should take their time and see what schemes are working
in other countries because if they get this even slightly wrong our economy
will be completely decimated. I for one would prefer a few thousand
more people joining the live register and to get this right than to act now
to save those few thousand and destroy the economy in 6 months.The best thing the government could do is instead of recapitalising the banks, lend the money directly to small businesses and compete with the banks. What is going to happen, as we've seen with the bank guarantee, is that they will be recapitalised and just use the injection to continue rolling over huge loans they have given to developers, who are unable to repay.
This is the same government that cant afford cancer vaccines and medical cards for OAPs? You are joking with that last statement arent you?
Plus the fact that it would be completely against EU competition law.The bank guarantee has done absolutely nothing to help businesses in this country, Biffo and Brian have given the title deeds to Paddy's Green Shamrock Shore to the wholesale banks in order to prop up Irish banks and it hasn't made the slightest bit of a difference on the ground, which must prompt the question, was it worth doing at all then???
Read my other replies. Without the guarantee you would be applying for
loans and mortgages in german or spanish as there would be no banks left.The recapitalisation when it comes around, is going to be more of the same. I don't know what we are expecting when we have a Barrister as the Minister for Finance and a Solicitor running the country, two professions that would know as much about getting value for money as the orangatangs down in the Phoenix Park.
What on earth you are trying to say here i honestly dont know.I know that the people I'm talking to on the ground are of the opinion that BOI is not lending at the moment to businesses.
Well start talking to more people because the 2 or 3 you have been speaking to are wrongTo say that they haven't lent to a single business is of course not true, but the point I'm making is that there is a huge inconsistency between what the reality on the ground is (that they are not lending and this is what anyone who is running a business is seeing), and what they are stating on the public record through the Dail PAC. This is a fact, not a fiction.
I think you are speaking a bit of fiction there yourself mate.
Of course banks are not lending like they used to, if they were it would be
completely wreckless in the current environment. To say they have closed
their doors is plain and simply wrong though.Maybe your not running a business or in daily contact with people who are running businesses and therefore not in a position to know what the actual situation is. They will lend if you are in a position to secure the loan with 100% cash security. If you have 100K in a cash security, and you want a 100K loan, of course they will lend to you, but you have exactly what you started out with, 100K! If you want a 200K loan and you have 100K to put up to secure it, no can do. That's the situation on the ground.
Have you seen the current economic environment?
Every bank in Ireland has been priced to go bust because of bad debts which
according to some geniuses are going to hit 1500bps.
If banks were seen to give out loans in the same fashion as they did 2 years
ago the management would be arrested from crying out loud.
I myself got a 15K loan 2 weeks ago with no collateral so there definitely is
money being given out. I got it in 3 days with no fuss and little track record
before you ask.
Darragh you seem extremely angry and concerned but you are venting
your anger at the banks and the government when infact the problems
are outside of both of their controls. The EU is in recession for the first time
ever, do you honestly think even if you saw it coming 5 years ago that
we could have done anything to stop it happening here? Of course not. We
are one of the most open economies in the world, what happens in the US
and the EU happens here, plain and simple.
Recessions happen, its inevitable now we have to work our way out of it0 -
Imagine I put €1000 (spare money) into boi shares with the idea of holding them for 20 years. Is that a bad idea?
Personally I don't think so as it's spare money and I'm aware and willing to deal with a total loss. Risk worth taking then? 20 years from now they should be worth something!0 -
This is the same government that cant afford cancer vaccines and medical cards for OAPs? You are joking with that last statement arent you?
Plus the fact that it would be completely against EU competition law.
Yeah, it's the same government that can't afford cancer vaccines for kids and medical cards for the elderly that is going to be recapitalising these very banks probably before the week is up.
The government has been competing with the banking system on the investment front for many years, through the IDA and County Enterprise Boards, albeit fairly inefficiently in the case of the County Enterprise Boards.
This mantra I'm hearing here about banks lending is simply a cod. Two people here who are insisting that I'm not correct here, do you by any chance work for a bank???0 -
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Have you seen the current economic environment?
Every bank in Ireland has been priced to go bust because of bad debts which
according to some geniuses are going to hit 1500bps.
If banks were seen to give out loans in the same fashion as they did 2 years
ago the management would be arrested from crying out loud.
I myself got a 15K loan 2 weeks ago with no collateral so there definitely is
money being given out. I got it in 3 days with no fuss and little track record
before you ask.
Darragh you seem extremely angry and concerned but you are venting
your anger at the banks and the government when infact the problems
are outside of both of their controls. The EU is in recession for the first time
ever, do you honestly think even if you saw it coming 5 years ago that
we could have done anything to stop it happening here? Of course not. We
are one of the most open economies in the world, what happens in the US
and the EU happens here, plain and simple.
Recessions happen, its inevitable now we have to work our way out of it
First of all, I'm not angry, but I'm alarmed at how much is being lost on a daily basis on the jobs front, and we have a government that appears to have fu*k all of a plan with regard to what to do about it, and we have on the other hand, banks that simply won't come clean about the extent of the problem we have here.
If you genuinely believe that external factors are the cause of the problem as you appear to, grand, that's your opinion. I don't run with this at all, the sooner the banks sort out the issue of them being basically constipated with regard to large loans to developers that are being defaulted on, the sooner we can draw a line under this.
There is a reason that two banks now have a share price that you could buy for less than a can of Pepsi. Nobody has any confidence in the banks management, wait 'til you see, they have barely finished the sentence where they said they didn't need any capital and they will be recapitalised by the end of this week if not next week!?!?!?!0 -
. Maybe your not running a business or in daily contact with people who are running businesses and therefore not in a position to know what the actual situation is. They will lend if you are in a position to secure the loan with 100% cash security. If you have 100K in a cash security, and you want a 100K loan, of course they will lend to you, but you have exactly what you started out with, 100K! If you want a 200K loan and you have 100K to put up to secure it, no can do. That's the situation on the ground.
Thats funny TBH, who are your "people on the ground", did they happen to work for Joe Duffy. Bank of ireland are making profits of up to 3 million a day - a day.
Was talking to a friend who worked for AIB, she said they had a business man in looking for finance and shouting to all an sundry that the BOI weren't lending and he was leaving them. She said ok and applied for finance, turns out this guy had over ninety unpaids on his account with BOi and had also been refused for finance with halifax. You'll find that it these type of people 'on the ground' who are saying the BOI isn't lending. Of course they are more choosy with their lending, but with the current times I'd expect them to be.
On a side note, no mention of Angle irish who hit 94cent per share today also, Aib hit 2.45,or is it only BOI who you have a bug bear with?0 -
Thats funny TBH, who are your "people on the ground", did they happen to work for Joe Duffy. Bank of ireland are making profits of up to 3 million a day - a day.
Was talking to a friend who worked for AIB, she said they had a business man in looking for finance and shouting to all an sundry that the BOI weren't lending and he was leaving them. She said ok and applied for finance, turns out this guy had over ninety unpaids on his account with BOi and had also been refused for finance with halifax. You'll find that it these type of people 'on the ground' who are saying the BOI isn't lending. Of course they are more choosy with their lending, but with the current times I'd expect them to be.
On a side note, no mention of Angle irish who hit 94cent per share today also, Aib hit 2.45,or is it only BOI who you have a bug bear with?
No, I've no inherent issue with BOI or AIB or any other bank as you incorrectly have implied. I just know from talking to some folks who are by no means running "small" business operations, they have found that you are wasting your time going to a bank for finance now. It's no skin off their nose, one of them just let 5 people go today instead! That's progress for you. There is very clearly a problem with banks lending now, especially to younger businesses that haven't had the last few years of growth behind them to get properly capitalised, so that they can weather the storm.
This myth that there is no problem is only making the problem worse in the longer term.0 -
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Yeah, it's the same government that can't afford cancer vaccines for kids and medical cards for the elderly that is going to be recapitalising these very banks probably before the week is up.
The government has been competing with the banking system on the investment front for many years, through the IDA and County Enterprise Boards, albeit fairly inefficiently in the case of the County Enterprise Boards.
This mantra I'm hearing here about banks lending is simply a cod. Two people here who are insisting that I'm not correct here, do you by any chance work for a bank???First of all, I'm not angry, but I'm alarmed at how much is being lost on a daily basis on the jobs front, and we have a government that appears to have fu*k all of a plan with regard to what to do about it, and we have on the other hand, banks that simply won't come clean about the extent of the problem we have here.
If you genuinely believe that external factors are the cause of the problem as you appear to, grand, that's your opinion. I don't run with this at all, the sooner the banks sort out the issue of them being basically constipated with regard to large loans to developers that are being defaulted on, the sooner we can draw a line under this.
There is a reason that two banks now have a share price that you could buy for less than a can of Pepsi. Nobody has any confidence in the banks management, wait 'til you see, they have barely finished the sentence where they said they didn't need any capital and they will be recapitalised by the end of this week if not next week!?!?!?!
Mate honestly you are talking some serious crap in this thread.
How the hell do you not think external factors are the reason we are screwed?
Do you honestly think there are enough jobs in this country without FDI or
exporting? Jobs are being wiped out due to currency and the collapse of
the consumer in the UK and USA.
You are naive to say the very least if you think the banks lack of lending
is the reason we are in this mess.
Sterling, high commodity prices until recently and now the collapse of the UK
and US consumer are by far the biggest problems our government faces.
Oh and guess what, it has no control over any of them.
Have a read of the papers or yahoo finance and realise that just because
some mechanic in Mayo cant get 50k of a business loan doesnt mean the
economy is screwed. However when you see the likes of Circuit City collapse
and the world shipping index collapse 92% in 5 months then you see that this
is a huge global issue and we are just along for the ride. We have NO control
over whats happening. We can perform damage limitation but ultimately we
are at the mercy of our trading partners because our economy is so open and
dependant on trade.0 -
If enough "mechanics" can't get a loan then the economy is screwed.
Mike0 -
If enough "mechanics" can't get a loan then the economy is screwed.
Mike
No its not, if enough mechanics cant get a loan it means their business' are
screwed. If they cant get a loan they are not in a strong enough business
position to warrant one. Lending is most definitely still happening its just got
tighter criteria on it. If Darraghs people on the ground cant get credit its
because they dont warrant it. Simple as that.0 -
So, I just thought, since both my parents took early retirement from the Bank of Ireland and their entire income is solely from the bank, if the bank were to get in to trouble would they be in jeoperdy.0
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Baird I disagree as far as I can see we have reached the point where perfectly good businesses are being denied a line of credit cos banks are too busy re-capitalising themselves, they are not lending.
Anyone here want to admit to being a bank manager? Maybe we can get some first hand info.
Mike0 -
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Mate honestly you are talking some serious crap in this thread.
How the hell do you not think external factors are the reason we are screwed?
Do you honestly think there are enough jobs in this country without FDI or
exporting? Jobs are being wiped out due to currency and the collapse of
the consumer in the UK and USA.
You are naive to say the very least if you think the banks lack of lending
is the reason we are in this mess.
Sterling, high commodity prices until recently and now the collapse of the UK
and US consumer are by far the biggest problems our government faces.
Oh and guess what, it has no control over any of them.
Have a read of the papers or yahoo finance and realise that just because
some mechanic in Mayo cant get 50k of a business loan doesnt mean the
economy is screwed. However when you see the likes of Circuit City collapse
and the world shipping index collapse 92% in 5 months then you see that this
is a huge global issue and we are just along for the ride. We have NO control
over whats happening. We can perform damage limitation but ultimately we
are at the mercy of our trading partners because our economy is so open and
dependant on trade.
Nothing crap about the following opinions:
(1) Our government made a decision to allow our economy to become overly dependent on the property market. This is not an external problem, this is an internal cause of what is now a major problem in our economy, specific to our country our economy and our government.
(2) Our country has never sucessfully encouraged entrepreneurship in this country. Any worldwide economies that have enjoyed long term growth, have been places where there is a healthy business culture which rewards and encourages, product innovation, risk taking and entrepreneurship. This country is not one of those places, we had two recent boom short term economic booms which ran into each other, one brought about by major FDI by US and other multinationals in the mid/late 90's,
and the second one brought about by the rapid rise in the value of property in the last 5 years in particular.
The decisions behind the strategy to (A) encourage a lot of employment in foreign multinationals, and (B) to allow the economy to become completely dependent on the property market, these two decisions are tied to the government of this country. Real long term growth, while it might be kick started by the introduction of FDI and multinationals and a boost to employment, is sustained over the long term by product innovation and a healthy culture of entrepreneurship in a society. We've put all our eggs into two baskets in recent years, property and large foreign multinational employers and now that decision has come back to revisit us...
There is nothing foreign, or indeed stupid about the above.0
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