The problems with a property bubble are now becoming apparent with news overnight that now four of the six biggest Irish banks are now nationalised. Those unfortunates who are still hard-working and able to repay their over-priced mortgages are also faced with a double-whammy; their taxes for the forseeable future will go towards repaying the excessive loans which went bad when property prices collapsed. This property market was driven hard by banks and property developers who are walking away with their fees already pocketed and the bond holders in banks also get bailed out. Sounds like a screwed-up system to me.
People here in Australia say it cannot possibly happen here. I’m not convinced.
