www.city-journal.org/2011/eon0223td.html
The Worlds largest debtor nation
Read The article by Theodore Dalrymple How The Irish Bubble Burst -microcosm of globel economics .
Ireland twice the size of Switzerland , it does have a well educated population and trade surplus - but there is no way its population could pay back a debt that is close on half a million US dollars per paddy - what's the in Euros?
The Irish gross external debt is close on half a million dollars for every person in Ireland -the little people exepted. That is the money owed to lenders in other lands eg The Royal Bank Of Scotland which lent $50 Billion .
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Ireland's property bubble has resulted in unopened hotel and office blocks across the Emerald Isle. Was it ever logical that housed cost more in Dublin than London, an international centre .
Or that a rainy country would be a desirable location.
Both Irish homeowners and property developers used the inflated value of their over priced properties as "security" for loans to buy more properties in Ireland and overseas. One factor in the 1929 Wall Street Crash - share speculators where using their soaring shares as security with banks to buy more shares -which of course drove up share prices. When the US banks where close to bust -the Glass Stengal act was introduced to stop wild Bank speculation.
After Gordon Brown removed controls on the Bank Of England - in 2000 the Clinton administration concerned the US banks would move to less regulated London repealed the Glass -Stengal act. In this act of Gordon Brown was the genesis of Northern Rock, RSB . US sub-prime , Lehman Brothers ect
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