facebook
twitter
rss
account
search
search
 

Real estate loans spur Irish recession

Oct. 6, 2008 at 9:10 AM   |   Comments

DUBLIN, Ireland, Oct. 6 (UPI) -- A move by the Irish government to guarantee all $550 billion of the country's bank deposits is a consequence of reckless real estate lending, analysts say.

When Ireland made the unilateral move last week, it surprised EU partners. But Sunday Germany announced that its government would guarantee private bank accounts as EU nations are being forced to confront the fact that their own lenders, as well as U.S. banks, made poor real estate bets, The Washington Post reported.

The newspaper said Irish economists and political leaders are facing a severe recession and have come to realize their problems stem not just from spillover from Wall Street's woes, but from massive, reckless domestic real estate lending as well.

"This didn't fall from the sky. There are people who are up to their necks in profligate and greedy lending," Ruairi Quinn, a senior Irish Labor Party official, told the Post.

"People now look back on the 10 to 15 years leading up to 2006 as the Golden Age," added Geoff Tucker, an economist at the Hooke and MacDonald real estate firm. "Things are different now. There is a huge amount of uncertainty."

© 2008 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Recommended UPI Stories
Featured UPI Collection
trending
2014: The Year in Music [PHOTOS]

2014: The Year in Music [PHOTOS]

Most Popular
1
Source: Ferguson cop beaten before shooting
2
Robert Hansen, notorious Alaska serial killer, dead at 75
3
Boko Haram overruns Nigerian police academy
4
4 firefighters injured in 'Ice Bucket Challenge'
5
Brady Morton's body discovered three days after Port Huron Float Down
Trending News
Video
x
Feedback