# Did the SSIAs mature too soon?



## csirl (20 Nov 2008)

Did the Government make the wrong call on the timeframe for the maturation of SSIAs? They matured at the wrong time - when the credit was easiest to get, thus fueling the bubble which burst.

Wouldnt it have been better if the SSIAs were due to mature in 2009? Would this have cushioned the blow of the credit crunch?


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## LennyBriscoe (20 Nov 2008)

Delighted mine matured in 2006 - I had mine tied to the stock market!


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## sulo (20 Nov 2008)

I second that lenny!


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## fobs (20 Nov 2008)

I agree that they matured too soon. Was only discussing this last night with a group of people and the concensus was if it was maturing late december/early 2009 would be beter as would give people a cushion of money (other than equity based SSIA's).

Could they implement another one now or is it too late?


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## CGorman (20 Nov 2008)

fobs said:


> Could they implement another one now or is it too late?



From an economic point of view, it would be a very bad idea to have another SSIA scheme now as it would take huge amounts of money (spending power) out of the economy at exactly the moment that it is needed.


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## Purple (20 Nov 2008)

CGorman said:


> From an economic point of view, it would be a very bad idea to have another SSIA scheme now as it would take huge amounts of money (spending power) out of the economy at exactly the moment that it is needed.


Yea, that would be like increasing taxes during a recession. 
Thank God the government is not that stupid!


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## Guest122 (20 Nov 2008)

I thought they matured at the right time. Just before a general election...


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## CGorman (20 Nov 2008)

Breffni Boy2 said:


> I thought they matured at the right time. Just before a general election...



Spot on!


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## csirl (20 Nov 2008)

CGorman said:


> From an economic point of view, it would be a very bad idea to have another SSIA scheme now as it would take huge amounts of money (spending power) out of the economy at exactly the moment that it is needed.


 
What about recapitalising the banks?

Instead of the Government using taxpayers money to bail them out, how about an SSIA?

1m people doing an SSIA which will give 20k each is the equivalent of capitalising the banks with 20bn in cash.


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## CGorman (20 Nov 2008)

csirl said:


> What about recapitalising the banks?
> 
> Instead of the Government using taxpayers money to bail them out, how about an SSIA?
> 
> 1m people doing an SSIA which will give 20k each is the equivalent of capitalising the banks with 20bn in cash.



The governement is likely to borrow the money if it is to recapitalise the banks, this will mean it will not take the money directly out of the economy in one large swoop this year (it will over time however need increased tax income to repay the bondholders).

In comparision if 1m put 20k each away, they are almost certainly going to spend alot less than they would have. This reduction in spending will have the effect of making the recession much deeper (as if it is'nt already forecast to be deep enough!)


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## Jethro Tull (29 Nov 2008)

Breffni Boy2 said:


> I thought they matured at the right time. Just before a general election...


 
Was just going to post something similar! From the government's point of view it was 100% the right time!


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## PaddyBloggit (29 Nov 2008)

Any Government that would commit to adding 1 for every 4 saved was totally and absolutely barking mad.

I did a fixed SSIA ... it provided me with furniture, paid off my car loan, bought a maaaaaaaasive flat screen tv and I still had a little left over!

The SSIA's were a God send for me .... but it didn't do the state coffers any good.

It probably over stimulated the economy and is probably one of the reasons we're in this economic mess now!


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## rmelly (29 Nov 2008)

csirl said:


> Did the Government make the wrong call on the timeframe for the maturation of SSIAs? They matured at the wrong time - when the credit was easiest to get, thus fueling the bubble which burst.
> 
> Wouldnt it have been better if the SSIAs were due to mature in 2009? Would this have cushioned the blow of the credit crunch?


 
If the government had the foresight to see the credit crunchie 7 years ago, I suspect they would have done a great many things differently, the SSIA scheme wouldn't have been that high on the priority list, so this is a pretty pointless discussion...


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## Purple (29 Nov 2008)

rmelly said:


> If the government had the foresight to see the credit crunchie 7 years ago, I suspect they would have done a great many things differently, the SSIA scheme wouldn't have been that high on the priority list, so this is a pretty pointless discussion...


If they knew we were in a property bubble and that capital taxes were sustaining current spending then they would have done things differently... oh no, wait; they did know.


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## z109 (29 Nov 2008)

PaddyBloggit said:


> Any Government that would commit to adding 1 for every 4 saved was totally and absolutely barking mad.
> 
> I did a fixed SSIA ... it provided me with furniture, paid off my car loan, bought a maaaaaaaasive flat screen tv and I still had a little left over!
> 
> ...


Ehm, Paddy, you do know that you paid for 80% of those things yourself?

At a time when the economy was overheating, it was probably the right thing to do (to take cash out of the economy for a while). What shouldn't have been done was to have tax cuts with it, a fixed end date, an expensive national wage agreement, and a structural defecit.


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## depression (30 Nov 2008)

I feel sorry for anyone who invested in the ISEQ and left the money there.
With the state of the Irish stock market right now they must be in tears.
Everyone was half jealous of them when the SSIAs matured as they were the ones who made the most money. However 'I've seen a few posts where people have said ah sure I'll leave it there' . Bad move...


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