I’m grateful to Constantin Gurdgiev for his multi-parted dissemination of the fourth report (and here and here) on Ireland’s progress under the Troika’s funding… They’re not hitting the panic button, but the underlying message is that Ireland is doing well, but we’re asking them to do too much on their own…
One clear and unambiguous problem is the sheer amount of household and housing debt currently being piled upon the shoulders of the young…
Arrears tend to be highest in relation to buy-to-let properties and first-time buyers, as these purchasers took on large debts owing to high house prices during 2005–08.
Negative equity is extensive. It is estimated that 36 percent of owner-occupier households with mortgages in these institutions are in negative equity (at September 2011 house prices). [This, of course, is now higher again, as October and November price declines totalled 3.71%]
For owner-occupier loans taken between 2005 and 2008 (half of outstanding loans), 48 percent of properties are in negative equity, while 52 percent of buy-to-let loans are in negative equity.
Mick 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
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