Could anyone please explain to me how this recession started in Ireland?

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Orla C

Because the government allowed prolifigate spending and borrowing to go on. The SSIA wasn't enough, in the end it only encouraged more spending .... and people started to live on credit, which is not good.

Also, the big employers in the regions are not Irish, but American. American business culture is not about benefitting local communities, it's about making the business bigger and stronger and more powerful. So in order for those companies to keep their edge, they are relocating operations to places where the labour is cheap and those policing safety regulations can be easily bribed to look the other way. This is why jobs are going in Limerick, like in Dell.

Now it's time for the government to take OUR money - remember, every single one of these people is the government is supposed to be working for us, given that our taxes pay for them - and use it to start out Irish companies.

Country Gal

I think that a recession was bound to start here as we were all living beyond our means, what could the governmentt have done to stop that?? However the now that we are in a recession thegovernmentt should be more capable than they are being in dealing with it. The Vat rates should have been slashed not increased, their should be more incentives for people to buy new homes i.e bring back the first time buyers grant and increase it to â‚¬7,500 introduce incentives for people buying new cars, etc. The government do not appear to have any money to do these things because of theridiculouss salaries they are paying the TD's and their staff, Tax payers money has been wasted onhairdo'ss for mary harney and expensive flights and accommodation for the others its a disgrace and don't even get me started on fas. So in brief my answer is they should be better prepared than they are to deal with this situation

Sshhhh! It's Podge and Rodge

Greed. And Fianna Fail are very much to blame for it.

crazygirl

Read the book

"Animal farm"

It explains it all.

Good Luck.

Edit: Because of the greedy "pigs" that give their fellow pigs jobs that they were unable to do.

Banks lent too much.

Factory's leaving.

Companies unable to now get loans.

People spent less because they have less money.

Shops close down because no business.

There are many reasons.

I blame the "Pigs"

Read Animal farm.

Also read the children's story about the grasshopper and the ants.

Stupid freaking grasshopper's with their bloody image shite.

" Oh I have a cool house and car"

Oh you bought it on credit.

The grasshopper is screwed now, serves them right.

This children story has a different ending.

Feel sorry for the poor which are more poor now, do.

Eddie F

Ireland over indulged in the good times. The feel good factor was pumped up to the last - nobody believed they would ever see a poor day again.

In the late 90's, the banks were giving loans for anything, and to anyone. The banks lent money to people with no means of being able to pay it back.

The banks approved loans for property at massive inflated prices, everybody jumped on the wagon.

My buddy bought his first house last July for 236 thousand euro, today, 6 months on, his house is valued at 180 thousand... and falling! To make matters worse, his total repayment scheme will see him in debt to the tune of 600 thousand euro!! (This is brought on by interest)

After years of our banks throwing all their money away, they eventually saw that their coffers were empty, no more good times..

Once this news seeped out, there was mass panic amongst the natives, they all stopped shopping, stopped paying their visa bills, stopped paying their mortgage repayments...

The dollar soon took a hit, it became unviable for the American firms to
do business in Ireland.... And then all hell broke loose!!

The government had to prop the banks up, jobs were going to the wall, the feel good factor turned into a blame game..

Then recession came.....

Welcome to Ireland 2009!

Christine

The recession is international, not just in Ireland, the difference with Ireland is that we have morons running the country, who are doing nothing to stimulate the economy, if anything by increasing VAT and personal taxes on the low earners they are retracting the economy further. Look at some of Obama policies, or even Darling in the UK to see what I mean, them compare it to our crowd.

I think the blame can be traced back to Alan Greenspan and Bush -he dropped interest rates in the US at a time when it was not really necessary (unlike now), this led to increased borrowing , but to everyone, not just to people who could afford to pay the banks back. This policy expanded beyond the US to Europe, people began to live beyond their means, which in turn led to over production of everything, because we all thought we could afford anything,which now that the credit has dried up (the banks are wary to even lend to each other) these companies can no longer sell their goods, like cars for example, leading to job losses. People are holding on to their cash, meaning less money is being spent, leading to job losses not only in production but services too.

The basis of economics is you have to spend your way out of a recession. This very basic tenant seems to be lost on the Irish government. I think its time to build up local industries, and promote ourselves in the service, not manufacturing Industries. this is an over due adjustment, I could even be cruel and say its almost a necessity, but we needed to wake up to our reality. For thousands of Irish there was no Celtic tiger, others thought it existed, but they didn't' realise they were just living on credit. Time for that to stop now. And the government still can't seem to see beyond the construction industry as a way to solve our problems, which is no surprise, when the large builders have the government in their back pockets.

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