Posted by: gaiusc | 5 July, 2008

Not the best week ever for debt-loaded property owners

And that’s putting it mildly. Up went the interest rates and this will mean paying an extra €45 a month for people on a €300,000 mortgage over 30 years. With the way eurozone inflation is running, there could well be another rate increase on the way before the year is out.
What remains to be seen now is how much the banks increase rates by. It’s highly likely that it’ll be more than 0.25%.

On top of that, jobless figures are rising fast. It’s been a decade since numbers were so high and with construction & retail taking huge hits, it’s likely to increase further. After a boom that lasted a decade, dumb things that people said, such as Bertie’s “doom-mongers should just go and kill themselves” and “the boom is getting boomier” are really starting to look even dumber than they sounded back then.

However the prize chump award must go to economists who feel interest rates in their guts and that’s none other than the redoubtable Austin Hughes.

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Responses

  1. I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog.

    Tim Ramsey

  2. […] Read the rest of this great post here […]

  3. Thanks Tim. Glad you liked it. Covering the ludicrous property bubble in Ireland is a bit like shooting fish in a barrel.

    Sorry it took a few days to approve your comment as wordpress though it was spam and I had to dig it out to approve.


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