Comments on: Government borrowing by proxy? http://www.markingtime.org/blog/2005/11/03/government-borrowing-by-proxy/ Mark Time. Gather My Thoughts. Talk to myself. Wed, 07 Jan 2009 04:20:44 +0000 http://wordpress.org/?v=2.0.1 by: simon http://www.markingtime.org/blog/2005/11/03/government-borrowing-by-proxy/#comment-5481 Thu, 03 Nov 2005 23:57:42 +0000 http://www.markingtime.org/blog/2005/11/03/government-borrowing-by-proxy/#comment-5481 Most of the debt about 80% is in houses. Which i believe is not bad as it is an asset i.e unlike a holiday it does depricate in value an awfull lot. Even if the bubble burst a house is still worth something. Also anopther large portion is probably in cars which people do need and unless they are ferraris are needed. So i don't think mcuh of the debt really is uncontrollable consumeresm. Credit card debt would be a more interesting figure to see. nice site by the way Most of the debt about 80% is in houses. Which i believe is not bad as it is an asset i.e unlike a holiday it does depricate in value an awfull lot. Even if the bubble burst a house is still worth something. Also anopther large portion is probably in cars which people do need and unless they are ferraris are needed. So i don’t think mcuh of the debt really is uncontrollable consumeresm. Credit card debt would be a more interesting figure to see. nice site by the way

]]> by: Treasa http://www.markingtime.org/blog/2005/11/03/government-borrowing-by-proxy/#comment-5480 Thu, 03 Nov 2005 19:15:04 +0000 http://www.markingtime.org/blog/2005/11/03/government-borrowing-by-proxy/#comment-5480 I have long been of the opinion that little or nothing was likely to be done about ballooning property prices since the Government was a major beneficiary of the current situation by being able to collect stamp duty calculated on the property price, even allowing for exemptions passed onto first time buyers. Regarding personal debt levels, what worries me is that when the chickens eventually do come home to roost, there will always been some complainants demanding that the Government "do something". "Ireland’s debt profile had changed as a result of a population increase in younger, higher-spending age groups and an “extraordinary” economic performance that had made Ireland one of the richest in the EU, he said." I've mixed feelings about this. Basically, if we're that well off, can't we afford much of our consumer spending without resorting to debt? I know I am not an economist but realistically, I can't imagine that any economic growth based on debt accumulation is anything other than a fantasy. Like the new décor, by the way. I have long been of the opinion that little or nothing was likely to be done about ballooning property prices since the Government was a major beneficiary of the current situation by being able to collect stamp duty calculated on the property price, even allowing for exemptions passed onto first time buyers.

Regarding personal debt levels, what worries me is that when the chickens eventually do come home to roost, there will always been some complainants demanding that the Government “do something”.

“Ireland’s debt profile had changed as a result of a population increase in younger, higher-spending age groups and an “extraordinary” economic performance that had made Ireland one of the richest in the EU, he said.”

I’ve mixed feelings about this. Basically, if we’re that well off, can’t we afford much of our consumer spending without resorting to debt? I know I am not an economist but realistically, I can’t imagine that any economic growth based on debt accumulation is anything other than a fantasy.

Like the new décor, by the way.

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