Bertie gives investment advice

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bearishbull

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i see bertie suggests that high levels of borrowing for high priced houses isnt a problem and that because people were saying prices would fall last year and in fact they rose a lot that the warnings were wrong and people made bad descisions by not buying last year! by berties logic if he was talking back in early 2000 about dot com prices he would have said people who didnt buy in previous year made bad decisions.where does this buddy of the builders get off? he knows he would pay a heavy price if there was a price crash for the governments inept management of the property market. i dont support FF but i sometimes hope they will get re-elected as if theres a property crash the government of the day will get the blame and i dont wanna see fianna fail get away with this one.
http://www.rte.ie/news/2006/0407/housing.html

do you think its right for our leader to be telling young couples worried about buying last year and having not bought yet that they made bad decisions and basically saying get in now or you'll never get on the ladder!i dont think it is.
 
Very distubing. He should be telling everyone to start saving more of their income for possible hard times ahead.
 

I'm no fan of FF either but how on earth is the government of a free market economy supposed to 'manage' the property market?

Are current prices not more a function of a) historically low interest rates; b) by Irish standards an unprecedented economic and employment boom; c) increasing population; d) further to point c, particularly the massive growth in population along the eastern seaboard?

Or are these the same people who blamed the government for the money they lost on Eircom?
 
At least Bertie's not sitting on the fence like he usually does. Now he's just leaning on it, spouting baloney.
 
Sherman said:
I'm no fan of FF either but how on earth is the government of a free market economy supposed to 'manage' the property market?
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Indeed. Another regularly-forgotten point that Ireland's property boom is merely part of a boom that is almost global in its proportions. Bit much for anyone to either expect Bertie to do much about it, or for that matter to either damn or credit him for its consequences.

Another thing - I'm continually amazed as to how many Irish people scoff at GW Bush while voting for Bertie. The only difference between these two guys as that Bush is prone to making simplistic, half-baked inane statements on the world stage and Bertie does the same on the local stage. When either guy is confronted by a situation that requires genuine leadership or decisiveness, they are stumped.
 
governemnt couldnt have done anything to stop rampant price inflation? i think you'll find they could have done numerous things to stop rampant inflation and speculation.even the most rampant capitalist countries like america have housing controls in the form of rent controls etc,homes arent like just every other commodity.
 
bearishbull said:
even the most rampant capitalist countries like america have housing controls in the form of rent controls etc,homes arent like just every other commodity.
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Are you saying that rent controls have been successful in America?
 
CCOVICH said:
Are you saying that rent controls have been successful in America?
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I think they have proven to be a myth alright, the market always finds a way around those kind of enforced price limitations.

As an example, in parts of the US, if there's a nice sought-after apartment that is rent controlled, you may find something like a "non-refundable key deposit" (i.e. a wad of cash) is asked for - it's the market's way of (legally) increasing rent in a rent-controlled situation.
 
im just saying market failure exists at times and in theory capitalist/mixed economeis have tried to and continue to try to avoid purely market based approaches to something as important as housing.
 
bearishbull said:
im just saying market failure exists at times and in theory capitalist/mixed economeis have tried to and continue to try to avoid purely market based approaches to something as important as housing.
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But why mention rent controls, which to my knowledge have been unsuccessful with regard to controlling price inflation, but have also had some part to play in the creation of ghettos.
 
Can I say one thing,I'm so sick of people giving out about health service/government etc.I agree they are morons(Bertie especially!),but if people give out then please vote them out!.I'm sick of people ranting on Joe Duffy show & they 're the same people who vote for Bertie
 
CCOVICH said:
But why mention rent controls, which to my knowledge have been unsuccessful with regard to controlling price inflation, but have also had some part to play in the creation of ghettos.
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i mention them as they are an example of a highly capitalist governments attempts to prevent purely market driven outcomes ,someone earlier said let market decide everything in this area which many countries dont accept.
 
Interest rates are the key to the property market and the last time I looked they were set by central bankers not by the market. So It is idiotic to talk about "free markets" when the key price- the price of money - is decided by the government. If there was a market set interest rate in Ireland, I think it would be on par with NZ around 7%
 
Sherman said:
I'm no fan of FF either but how on earth is the government of a free market economy supposed to 'manage' the property market?
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Possibly by NOT creating an environment where vast amounts of potential building land around Dublin is not tightly held by a small number of (Galway Races tent visiting) developers. Possibly by implementing the recommendations of the Kenny report from 30 years which proposed that local authorities can buy potential development land at its existing value plus an additional 25 per cent (though I recognise that a constitutional change may be required). Possibly by ensuring a half-decent programme of social and affordable housing.
 
Bertie Ahern is dismissive of warnings from the World Bank the OECD and the ECB, and he is right, for the time being. Property prices look set to rise by in excess of 20% this year, so if you buy now you will pay less than you are likely to pay in the late summer. Irish Banks are quite capable of structuring mortgage lending, by the use of interest only and introductory discount ‘teaser rates’. These types of lending practices, coupled with inter generational equity release are capable of driving the Irish property market upwards even in the face of rising interest rates. So Bertie is spot on, buy now, hopefully he will be as vocal about when its time to sell.

The report I’ve quoted below comes from the Centre of Economic Policy and Research in the US. The report suggests actions that should be taken by the US government and the Federal Reserve to burst their housing bubble. The CEPR recommend that preemptive action is taken so as to avoid long term damage to the US economy, when the bubble bursts.


http://www.cepr.net/columns/baker/2006_03_30.htm
 
Sherman said:
I'm no fan of FF either but how on earth is the government of a free market economy supposed to 'manage' the property market?
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Through allowing the central bank set interest rates at a level suitable for the Irish economy but then the Irish government handed that away to the ECB.

The US Fed have done a pretty good job of cooling the property market stateside.
 

You have a point here alright they're both 'chancers' and talk a lot of nonsense, I think Bertie has a slight advantage in the IO stakes to be fair to him (that wouldnt be hard I know!)
 

You think Ireland is not more capitalist thank America! I dont think you could find a more capitalist country than Ireland buying a house is much higher up the list of priorities here than with Americans in my dealings with them
 

I think most economists would agree with that section on the cepr website from what I've heard from some I know
 
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