We’re now in recession

16 Responses to “We’re now in recession”

  1. 1 Joe November 21, 2008 at 8:14 pm

    Brian Cowen is to blame for the recession in Ireland. yes there was a global problem, but besides fighting this, he decided to have a great time in thinking he could give 70% of loans to builders and developers to build constructive sites.
    but instead he lead this country into recession.
    While he was minister of finance, he made a mess of the irish economy.
    we are currently going through the Cowen recession

    Bertie ahern was in my opinion a is thieve, but one thing ill hand to him is, he kept money coming into this country by foreign trade and bringing foreign workers in .
    However,since the departure of these people back to their countries , this may be part of the problem.

  2. 2 Daragh November 23, 2008 at 5:20 pm

    I think the banks are to blame.

    they were too greedy and gave out loans to people they shouldnt have.
    the banks are paying the price for this and therefore so are the small and medium sized businesses.

    I dont think brian cowen is a good leader or a good decision maker.
    however the ression was coming regardless of who was in power.

  3. 3 donal geraghty November 23, 2008 at 5:52 pm

    definately the banks are to blame

  4. 4 Joe November 23, 2008 at 11:07 pm

    yes, but we were the first country in the european union to go into recession.
    This is because the country was ran badly.

  5. 5 Shane Reilly November 23, 2008 at 11:58 pm

    What are you on about Joe? How did Brian Cowen give 70% of loans to builders????

  6. 6 Daragh November 24, 2008 at 5:52 pm

    the only reason there is a financial crisis is because the banks dont have much capital (as a result of giving money to people with bad track records) . when the the banks dont have much capital they cant give much credit out. this means small and medium sized businesses cant expand, first time house buyers cant get a morgage etc.

    I cant see how brian cowen is to blame.
    Ireland were the first into the recession, but Ireland were also the first country to show leadership by making a guarantee.

  7. 7 joe November 25, 2008 at 7:40 pm

    not brian cowen. 70% of bank loans.

  8. 8 Shane Reilly November 25, 2008 at 10:16 pm

    Yes, but its not him thats responsible for that.

    If you ask me, the financial regulator has a big part to play in this, but also I think people brought this on themselves. I read an article a few weeks back in the Sunday Business Post about a woman getting a mortgage. The bank gave her a 90% loan of nearly €350,000. She was a substitute teacher and had to take on two part-time jobs as well as taking all the hours she could at school and was still contributing nearly around 60% of her income on her mortgage. I mean, I know the banks shouldn’t have given her this mortgage but in all honesty, how do these people tink they can continue these levels of repayment. You have to agree that a certain amount of responsibility lies with the people taking out the loans as well as the banks.

    What do ye think?

  9. 9 Shane Reilly November 25, 2008 at 10:16 pm


  10. 10 joe November 25, 2008 at 11:52 pm

    True, your very right, but let me add. who sets the rates and interest.
    the finance minister which was Brian Cowen.
    All the same i do agree with you but in my opinion he lead the country into recession by doing this.

  11. 11 Daragh November 26, 2008 at 5:53 pm

    I agree with shane the people taking out mortgages should be sure they can pay it back.
    70% of Anglo Irish banks bad deths were taken out by builders mostly borrowing in the excess of 7 million.

    If a person takes a mortgage of a 200 thousand the bank can chase this person for their mounthly repayments as they are not in fear.

    but if a builder takes out 10 million in order to build a housing estate the builder is in control because if he has a success with the estate he will make a couple of million. And if all goes wrong in the selling of the houses and the builder cant pay back the banks monthly repayments, what will happen is the builder will give the bank the housing estate that they have paid for with the loan. these houses cant be sold so therefore the bank loses out.

    what i mean is the builders will always take the loan if possible as its win/win for them (they wont lose their own money)
    Therefore the banks should be sure they will get there money back when giving out large scale loans.

  12. 12 Utsav November 26, 2008 at 8:31 pm

    I think the American Banks are responsible for the recession. They were the ones that had given away loans to people that weren’t able to pay the loan back. It was either because their job wasn’t stable or they were unemployed. I think the banks should’ve done a survey or something like that before providing the loan.

  13. 13 joe November 27, 2008 at 9:08 pm


    its clearly not the American banks fault, its a global recession.
    Yes the US played a part in it but not the full macoy

  14. 14 Utsav November 28, 2008 at 8:51 pm

    Well Joe,

    American banks played a huge part in the global recession. This recession is also linked to the closing down of extra-curricular activities in our school. As Darragh said “builders always win”. But it is the bank that provides the money. So it all starts off from the banks.

  15. 15 Utsav November 28, 2008 at 8:54 pm

    I also think that the government aren’t to blame for this, not Brian Cowen, not Brian Lenihan or Bertie Ahern. They weren’t the ones who spent all the money on useless things.

  16. 16 joe November 29, 2008 at 12:29 am

    Everyone is entitled to their opinion, but what does that have to do with american banks.

    The Irish Government set and did set the prices of rates.
    They gave out and made available all the loans to builders and developers, the developers now cannot pay back these loans etc and the banks are left in the gutter.
    So, Its not down to the government, what do they do.
    well ill tell you what they done.They brought out the budget early and put everything they could up,making it harder for us to live and buy goods. whereas the North of Ireland lowered their prices so that people would spend more money .
    Now people from the republic are going upto the north spending money on essential goods that they need, and guess what, this is taking money out of our economy as they are in the north(english) regions.

    The Irish Government turned their backs on the people. who would want to put up with this. Small businesses are suffering now because of it.

    Personally it discusses me to think that they would make such a stupid and unwise decision.
    I personally am going to immigrate after school. but then again, i do want to go to college and get a good education , but clearly Ireland is no longer somewhere where you can do that.

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