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Ireland: A sneak preview of the "new world order"
If you think this story is about Ireland only, you're missing the Big Picture.
The is EXACTLY what is going on in the US:
1. Ghost town developments
2. Huge real estate inventory overhang
3. Significant numbers of home owners under water
4. Massive declines in real estate values
5. Most home owners (and would be sellers) in denial
6. "Happy face" news reporting
7. Bank balance sheets a disaster
8. Governments bail out the banks
9. Taxpayers already facing reduced employment and "bubble era" debt to be saddled with the bill in the form of increased taxes and reduced services
We're only at the front end of this. The pain, while it is being felt by some acutely, has yet to hit full force.
You can cut a branch from a tree and put it in water it will still leaf and flower - one last time. The current "run up" of stock and commodity prices and the gallant treading water of low real estate prices is a severed branch in a vase of water (i.e. unsustainable and ultimately ineffective bailouts.)
Cash will become king in ways that few can imagine.
I recommend "Conquering the Crash" (most recent edition) for anyone seeking guidance for what appears to me to be the next inevitable huge leg down.
Bottom line: You can't devastate and then strangle the consumer economy without pulling the whole edifice down.
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