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Realistic Economy News thread



  • Registered Users Posts: 4,138 ✭✭✭realitykeeper

    nice_guy80 wrote: »
    Going on from the positive economic news thread, I think it's time a realistic economy thread was started to shed a bit of reality about the real economy out there...
    The Irish economy is sustained with confetti currency from the ECB. The confetti pays the balance of the fiscal deficit and it maintains employment and pay at levels that would be impossible without it. The Irish economy needs to get to a place where it has a fiscal surplus and a debt reduction program and crucially it needs to do this without recourse to ECB confetti. The economy needs to behave as though the ECB were being responsible.

  • Registered Users Posts: 13,031 ✭✭✭✭Geuze

    BoatMad wrote: »
    yes but house prices are not at a point where its attractive for developers

    Because costs are too high.

    Land costs are way too high.

    Finance costs are way too high, as follows:

    60% funded by senior debt - interest rate is 5-6%, even though ECB rate is 0%

    20% funded by private equity - they expect 12-14% interest - unreal

  • Registered Users Posts: 12,356 ✭✭✭✭mariaalice

    That's the answer for financing projects get Credit unions to invest especially as they are being charged for lodging money with the banks.

This discussion has been closed.