Sir, – Nobody, I suspect, who questions the measures to restrict access to mortgage funding as proposed by the Central Bank is advocating a return to the mayhem of the “boom” years.
But to suggest that the only alternative to the Central Bank’s proposals is such a return is nonsense – there hasn’t been, and there isn’t, right now, an enormous expansion in credit; there isn’t a property bubble in Ireland.
Right now, the world economy looks very flaky. Ireland’s economy has benefited from the quantitative easing implemented by the US and UK. Had those countries gone the way of the euro zone, the Irish depression would have been much deeper.
With Germany, France. Spain and Italy, just to mention the major euro economies, either flat or in recession, the question is whether there will be a quantitative easing in the euro zone area, and what effect this would have on the Irish property market.
The problem with the Central Bank’s proposal is the 20 per cent mortgage deposit requirement.
Will this douse the housing market at a time when the provision of alternative social housing is limited?
If we are going to have some kind of command economy, will this be extended to other sectors? Why only housing? Should we then have a prices and incomes policy?
Finally, those who are whispering something about putting an end to the cycle of boom and bust are in for a very rude awakening some time in the future – the cycle of boom and bust will recur endlessly. – Yours, etc,
EOIN DILLON,
Mount Brown,
Dublin 8.