NYT: Ireland Plans Bold Measures to Lift Housing Post author By Philip Lane Post date October 9, 2012 Dealbook’s account of the new personal insolvency bill is here. Categories In Uncategorized 6 Comments on NYT: Ireland Plans Bold Measures to Lift Housing ← IMF: World Economic Outlook; Fiscal Monitor → IMF on Fiscal Multipliers – More Notes 6 replies on “NYT: Ireland Plans Bold Measures to Lift Housing” Karl Whelan: NYT says Irish government’s slow attempt to introduce non-Dickensian insolvency legislation is “audacious” Reminds me of Dean “Beat the Press” Baker. The politicians are responding to widespread public revulsion to a Gov’t that bails out foreign mega banks but refuses relief to homeowners in distress. Survival is uppermost on their minds as usual. Common sense might triumph, a rare occurrence in Irish politics. A health care worker, Ms. Daly bought a home in 2009 in Belmayne, a new development in northern Dublin. Until last month, Ms. Daly said, she has been making her $1,200 payment. Then she fell behind after some unexpected expenses, including a car repair. Ms. Daly estimates that her finances would become manageable if her monthly mortgage payments were cut to around $900. “Right now, I am a slave to this dog box.” I wonder why I only seem to read these kind of quotes in publications outside Ireland. The insolvency bill cant work while insolvent banks are its gate keepers, public opinion wants and has been lead to expect debt write downs while being left to rent the home they have just defaulted, reference Jan (o’) Sullivan last night on prime time At some stage the truth will prevail, mortgage write downs should happen and will be added to government debt (as we own the banks), sorting the needy from the chancers will be a difficult challenge, nobody wants to pay for an asset thats worth less than the mortgage. Repossed houses need to realise their value at current market values to ofset against loses. waiting 22 years for a house to sell for what its worth is more damaging So when O when will the charade stop? re- Rich Mortgage writedowns won’t happen without some organisation and pressure from the mortgage-holders. The threats, and implementation if necessary, of a payment strike are crucial. How to share the misery of a credit boom? Leave it to politicians? Regulators? Banks? I used to work with a very forthright lady who said “paper never refused ink” to any written nonsense she encountered. The article assumes that the situation cannot worsen ……. Comments are closed.