Bruce wrote:
On Fri, 11 Dec 2009 11:07:51 +0000, The Natural Philosopher
wrote:

Dave Plowman (News) wrote:
In article ,
Bruce wrote:
To give an idea of what must happen here, regardless of which party is
in government, just look at what the Irish have had to do. At least
the Irish have had the courage to (1) admit how bad things are and
(2) actually *do something* about it. Here, Labour have done neither.
The Republic of Ireland is a prime example of an economy based near
entirely on the property boom.

No, based on exports.


Dave Plowman is right. Irish "wealth" has been entirely based on a
property asset bubble, backed by risky deals in the financial services
sector which have come unstuck.
#
Oh well. Might as well cancel my FT subsrciption and listen to you guys

"Ireland is an ultra-open economy. Compared with its neighbours in the
UK, domestic demand is unimportant. Competitiveness is what matters.
Being bound into the eurozone and unable to devalue its currency, the
only way to give its goods an advantage is to cut wages in nominal
terms, as Mr Lenihan has done."



Irish manufacturing has been in decline for a few years now as
companies like Dell and Apple source components and assemblies from
cheaper markets in the far east.

Ireland has much the same problems as in the UK. The difference is,
the Irish government had the courage to take the same tough decisions
that are desperately needed here, but which our cowardly, negligent
and utterly dishonest Prime Minister has repeatedly shied away from.