Wednesday, September 27, 2006

So, Said Fred..

"To combat the depression by a forced credit expansion is to attempt to cure the evil by the very means which brought it about; because we are suffering from a misdirection of production, we want to create further misdirection - a procedure which can only lead to a much more severe crisis as soon as the credit expansion comes to an end." - Friedrich Hayek 1933

Enough said Fred.

Imagine if Hayek was alive today; looking for a concrete (or timber framed) example to support his thesis that curing a debt binge with more debt was a bad idea. Where oh where would he find a debt engrossed 'guinea pig' to observe,..... no don't tell me... its on the tip of my tongue.

Wednesday, September 13, 2006

Are Youze Talking To Us?

Jean-Claude Trichet, president of the ECB, suggested last week that the Irish housing market was ‘abnormal’. Abnormal hey?; abnormal sez he, abnormal is it? Why that jumped up little cheese eating surrender monkey! And to add insult to injury a shower of yahoos be the name of Fitch Ratings sez that, we should keep a look out for "macro-prudential stress”. Oi’ll give dem macro-prudential stress, so Oi will. Why cant all these spalpeens away and feck off. I’m off for a good f**kin read of Ireland's Own.

The rating agency Fitch said it now has five countries on watch for
"macro-prudential stress", up from two last year, using a set of indicators. A
mixed bag, they comprise Iceland, Azerbaijan, South Africa, Russia and,
surprisingly, Ireland, where the ratio of private credit to GDP has reached
190pc, the world's highest. The denouement for Ireland may not be pretty, since
it gave up control of monetary policy when it joined the euro.
Richard Fox, the author of the Fitch report, said: "We're still in a global upswing but this lending cycle is already starting to turn in some countries. Credit growth has
been zooming across the whole of Eastern Europe and that has tended to be a
precursor to banking troubles."