Sharp loss of value in the Irish market…

Well, it’s apparently in response to global drop in world market values, due to concern over a number of factors. But it seems to have had an extraordinary effect on the Irish stock market in particular. But given the vulnerabilities laid out in the recent European Economic Advisory Group’s report highlighting the Republic’s high level of vulnerability to a world slump, there must some alarm bells ringing somewhere in Dublin, however softly.

  • seabhac siulach

    “…there must some alarm bells ringing somewhere in Dublin, however softly.”

    If you are talking of the govt. (particularly Fianna Fail), they only have to somehow guide the increasingly disfunctional economy (runaway inflation, falling productivity, etc.), up to and over the finishing line of the (likely) May election. That is all they care about, the gombeen politicians of Fianna Fail/PDs. Much like in 2002, they would be keen to hide the true extent of the economic difficulties until after the election, relying on usual tame (and, ahem, strangely compliant) media to sugar-coat any bad news up until then (as happened in 2002), at which point it will be too late to vote them out again for another five years, irrespective of how the economy is doing. BTW this is a form of democratic dictatorship Irish style with Fianna Fail almost permanently in govt., in some coalition or other.
    They’ve been in power for about 18 of the last 20 years and 23 of the last 30!
    Ah, the Irish electorate, memories of goldfish, I sometimes think…
    Whoever wins the next election, will have a rough time of it, anyway, falling tax revenues in line with falling house construction, inflation at levels of 6%, falling productivity, increasing unemployment and hence resulting problems with the large and new pool of immigrants, etc.

  • Mick, the Irish Stock Exchange only fell by 1% more than the London Exchange last week as far as I know. Not much of a panic. Not that this goes against your analysis. It’s just that the recent stock exchange volatility isn’t the evidence you’re looking for (yet).

  • seabhac siulach

    “It’s just that the recent stock exchange volatility isn’t the evidence you’re looking for (yet).”

    If not that, then plenty of other ‘evidence’ to look at…what about the stagnant house prices (see yesterday’s Irish Times), and the resultant fall in tax revenue, the high inflation and resultant loss in productivity…both these factors are disimproving as we move further into 2007…

  • kensei

    It has also hit London fairly hard, and the FTSE dropped again this morning. I had read that was due to the British economy being extremely open and configured for globalisation. I’d imagine Dublin is similar.

  • Henry94

    The PDs have screwed up the housing market with their iept handling of stamp-duty.

    Buyers are sitting on their hands waiting for a cut and sellers won’t drop their prices because they are also waiting for clarity. Stalemate.

    This will wipe out the PDs at the election. They are finished.

  • Crataegus

    Keep your eyes on China. The Hang Seng Index dropped over 770 points, or 4 percent this morning. It has dropped 2000 pts since January high.

    Ireland and the rest will tend to follow given the importance of China in the global economy.

  • smcgiff

    Not for the faint hearted. But this crisis is a chance for those with spare cash that they wouldn’t mind being tied up for a few months.

  • GrassyNoel

    I hope the stock market collapses, the property market implodes and the whole economy smashes into a wall and takes years to recover. This country needs a good hard kick up the arse and people who think it’s a better place because we have loads of money haven’t a f*cking clue what they’re on about.

    The greed in this country absolutely sickens me now and when I think about all the people who emigrated in the 80s and early 90s I envy them. We have sold our souls to the banks and property developers, and we’re busily turning the country into one big housing estate in the process.

  • Ulster McNulty

    GrassyNoel

    It’s a case of a vibrant, prosperous, cocaine and credit fuelled, crime-infested, abysmally planned, modern European country completely at ease with itself.

  • smcgiff

    Yeah GrassyNoel,

    Lets invent a time machine and head back to the 50s or 80s to search for the comely maidens dancing at the cross roads!

  • GrassyNoel

    Predictably enough, criticism of the Celtic Tiger is met with the usual response of ‘well it’s better than the 1950’s or the 1980’s isn’t it?’ as if that’s the only option we had available to us over the last 10-12 years. This is of course then presented as an optimistic, ‘glass-half-full-rather-than-half-empty’ kind of outlook when in reality it’s a resignation, a lazy shrug of the shoulders to say, “ah sure it’ll do I suppose”, which is typically Irish anyway.

    What about the people still dying on hospital trolleys? What about the fact that it still takes about 4.5 hours to get from Dublin to Tralee by train? Why are no two cities on this Island connected by Motorway?

    Because fixing/delivering these things would require a bit of EFFORT, as well as just throwing loads of dosh around.

    But then asking the Irish people to show a bit of imagination and elect a different group of people for a change when the people who have been running this kip of a country for about 72 of the last 85 years have shown themselves to be a shower of absolute muppets, wasters, drunks and crooks would be a bit much.