Rebuilding Ireland is Outdated

The launch of Rebuilding Ireland has just surpassed three years. Many factors have changed since the original plan was initiated. Some figures that were estimated at the time of the launch for Rebuilding Ireland are now out of date. Rebuilding Ireland needs to be re-examined for optimal use because it is not performing as it was initially supposed to.

When the plan was originally drafted, it was predicted that the current number of homeless people would be 65% lower than the current number. The plan was not originally supposed to solve the homeless problem of this magnitude (10,000+ people) which is one of the reasons why it is ineffective. Everybody that is involved in the housing crisis believes this number is lower than what the current statistic is and is not an accurate reflection. with that are not included in this study are people who are crowd surfing, people doubling up with their family, and people sleeping rough. In addition, the 800 people that have been granted refugee or protection are not calculated for.

The prior Minister for Housing signaled …

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Donhoe’s Investigation in Interest Cap on Loans

The Minister for Finance and Personal Expenditure and Reform, Paschal Donohoe, has begun investigating the idea of capping interest rates moneylenders can charge. The discussion of capping maximum interest rates has been brought up by the fact that moneylenders can charge insanely high percent annually on small loans. In other words, any licensed moneylender is able to set their own interest rate. There has been a recent push onto the Minister for Finance to create a interest cap on loans.

Why is the ability for licensed moneylenders to set their own interest rates an issue ? Interest rates determine the price at which individuals can borrow money. The higher the interest rate the more expensive it becomes to borrow money. The higher the cost of money the more difficult it becomes to borrow money and thus discourages investment. Ultimately, ability to set extremely high interest rates means borrowers will be paying a high price for money. The higher the interest rate set by a moneylender the higher the lenders profit will be.

In comparison most countries in the European Union …

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Anglo, new ‘Bad bank / Bad bad bank’ plan

We are anaesthetized from outrage at this point when it comes to Anglo Irish Bank (or if you are a eurosceptic who doesn’t understand acronyms such as Ambrose Evans-Pricktard we are talking about ‘AIB’).

The latests announcement is that Anglo will be split into a deposit only bank and an asset recovery bank, both of which will be fully legal regulated entities. Let us be the first to congratulate the Minister of Finance for being the only singular individual who owns a bank in Ireland (two lines under the heading ‘resolution proposal’ it says “It will be a stand-alone, regulated bank, completely separated from Anglo’s loan assets and it will be owned directly by the Minister for Finance.”

Fascinating given that for anybody else you can’t have a single owner (see Central Bank: Licensing and Supervision Requirements and Standards …

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