#TheReset -We need to talk about debt…

Richard Ramsey, Chief Economist, NI, Ulster Bank During the aftermath of the Global Financial Crisis, one of the legacies was over-indebtedness that created zombie companies which weighed on growth as the economy sought to recover. These businesses were mostly larger and within certain sectors. The excessive debt was largely linked directly or indirectly to property. This time is different. It’s different because the banks are well-capitalised and stable. There is no credit crunch – where the cost of borrowing rises …

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Half of NI firms postponed or cancelled investment plans due to Brexit…

A survey by AIB bank shows that half of NI firms postponed or cancelled investment plans due to Brexit. As a business person myself I know in uncertain times you keep your money in your pocket to see how the future will pan out. You put off taking on new staff, you hold off on opening new premises, you don’t buy new equipment etc. But really caution does not just apply to business people but to any sensible consumer which is why we …

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Kickstarter idea for dealing with Stormont’s new (much bigger) deficit from, erm, Greece…

Aha, whilst we’re talking no longer talking about the Irish Syriza, here’s an idea we might use to fill the fiscal hole at Stormont which has suddenly opened up on Monday morning… Mick FealtyMick is founding editor of Slugger. He has written papers on the impacts of the Internet on politics and the wider media and is a regular guest and speaking events across Ireland, the UK and Europe. Twitter: @MickFealty

Fiscal Cliff Averted

So the fiscal cliff saga between the Republicans and President Obama had all the drama of the West Wing and even ended with resolution like an actual West Wing episode. The only fear is that this drama is set to re-appear in the future with both sides already highlighting the need for more debate around taxes and spending. So this cliff hanger was left with the famous words… To be continued. The last minute discussions around this issue highlights a …

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McParland to become Fianna Fail’s new Deputy General Secretary…

Now here’s a little adjunct to the NI Water affair, but before our resident conspiracy theorists go off on another one, so far as we can tell it is an adjunct. Pat Parland, who is currently head of their Communications team and sits on that controversial board will be leaving NI Water at the end of August to take up a position as Director of Communications (and Deputy General Secretary) at Fianna Fail in Dublin. Hmmm some might say, from …

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Global Crisis: Write-off or inflate debt away says Steve Keen

Aussie economist Steve Keen, host of the excellent Debt Deflation blog, has long argued that our current – record high – debt-to-gdp ratios are the real cause of the crisis. As the debt is still there, the crisis is still here. He offers a realistic assessment of our options – Having got ourselves into a debt-induced economic crisis, the only permanent way out is to reduce the debt–either directly by abolishing large slabs of it, or indirectly by inflating it …

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Irish budget cuts: Not speculation, or existentialism but hard-nosed finance

Lot’s of really interesting snippets in the Sunday Business Post. Two struck me as worth noting. The first notes that after a narrowing of the interest rates on the bond market, Ireland’s rate of borrowing is getting more expensive again. By Friday evening, ten year Irish bond interest rates were trading at about 4.7%, about 2% above that of German debt and above that of Portugal. The second (and I suspect it’s not entirely unrelated) is the news that the …

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