Have we any lessons from the last 10 years

[olddoll]

Yep, the only thing we learn from history is that we learn nothing from history.

We are all so busy trying to live that we don't have time to look to the past. As has been said, history continually repeats itself, but will future generations look at this era and learn from it ?

Over the last number of years there was so much pressure on young people to buy a property as prices were rising all the time and if you waited, then the property would be priced out of your reach. Remember the long queues overnight to buy properties off the plans? It was so crazy.

 

[canicemcavoy]

We are all so busy trying to live that we don't have time to look to the past. As has been said, history continually repeats itself, but will future generations look at this era and learn from it ?

Over the last number of years there was so much pressure on young people to buy a property as prices were rising all the time and if you waited, then the property would be priced out of your reach.

Here's the bit I never understood about that theory. If it got to the stage that a large proportion of the population couldn't afford to buy property, then surely the property system would collapse? I always understood that it would be self-correcting (which it was).

But yet people seriously seemed to believe property prices would rise linearly, with more and more people unable to afford them and presumably a core group of multi-millionaires owning them all.

 

[VOR]

Here's the bit I never understood about that theory. If it got to the stage that a large proportion of the population couldn't afford to buy property, then surely the property system would collapse? I always understood that it would be self-correcting (which it was).

The correction should have come a lot earlier but the banks stopped looking for money. As long as people have to cough up cash they'll think twice about a purchase. But when you can use "equity" from House A to buy House B people generally don't give two hoots. In essence, there just isn't the same level of commitment to the purchase. Of course, it also inflates the bubble that bit more as you don't have to earn the 10%. You just pull it from the sky!!!

So that's another lesson - Banks should be mandated by law to look for a minimum of 5% cash. The money should not be borrowed or part of an equity release.

 

[sinbadsailor]

I think there is a simple fact that individual people need to be educated on how the money system works. I'm talking "modern money mechanics" here and once people realise that debt is not kind and getting into debt of any kind requires some very serious consideration, you will find that less people will borrow, and only when they can remain in control of repaying that debt.

This will not be popular of course because it will mean less debt taken on by the population, which of course means less money can be "created" in the Irish economy as a whole, which means less profits etc for financial institutions etc

So don't hold your breath.

You can rely on politicians and financial institutions to be the moral and secure guides on debt best practices, it's not in their interests.

 

[sinbadsailor]

I think another lesson that has to be learned is from a purely personal point of view. I just think that for some reason, Irish people have too high an opinion of themselves. Maybe it's because we suffered at the hands of the English for so long and we think we deserve everything.

But one thing is for sure, we behaved in a fashion not unlike an unemployed bludger winning the euro-millions. With no grasp of ever earning a living or putting emphasis on rewarding for effort, the bludger would just blow it all on self indulgent spending. Loadsa money, no class or education to be wise with it. Ireland got money-thirsty and everyone start believing they were entitled to have whatever they wanted, and that the banks should lend to them to get it.

Again, people need to re-find the lost innocence and humility of the 'old' Irish persona.
At the moment we are just mini-amercian wannabies!

 

[Splash]

Take the time to study independent financial advice from people through means such as this excellent site; before making life changing financial decisions. There are Pro's and con's to alot of things we all need to educate ourselves on.

 

[Chris]

I think there is a simple fact that individual people need to be educated on how the money system works. I'm talking "modern money mechanics" here and once people realise that debt is not kind and getting into debt of any kind requires some very serious consideration, you will find that less people will borrow, and only when they can remain in control of repaying that debt.

This will not be popular of course because it will mean less debt taken on by the population, which of course means less money can be "created" in the Irish economy as a whole, which means less profits etc for financial institutions etc

So don't hold your breath.

You can rely on politicians and financial institutions to be the moral and secure guides on debt best practices, it's not in their interests.

I could not agree with you more! The shouting and calling for more regulation is a complete sign of the public's attitude to blame anyone but themselves. Banks were reckless in their business practices, but at the end of the day they were providing the exact products and services so many people wanted. Had banks restricted their lending practices 5 years ago, they would have been lambasted for not giving out enough money. It blew up in their face and they should not have been bailed out for it.
But people are so unwilling to take any responsibility for their actions and the situation they find themselves in. All they do is blame the regulator for not having seen it coming or not having proper regulations in place and are now demanding more regulations. These will only result in less competition and a more monopolized financial industry. That's why you hear no bank complaining about more or stricter regulations, they know any additional regulations will protect their businesses from competitors.
Personal financial responsibility has been completely lost and if it is not restored we will go from one financial crisis to then next with no lessons learnt.