Essay The 2008 Irish Financial Crisis - 526 Words

The 2008–10 Irish financial crisis is a most important political and financial crisis in the Republic of Ireland, consider being responsible for the countrys fall into recession for the first time since the 1980s. The Ireland’s economy expanded rapidly during the Celtic Tiger years due to a low corporate tax rate, low ECB interest rates, and other systemic factors. Ireland has transformed in recent years from an agricultural focus to a modern knowledge economy, focusing on services and high-tech industries and dependent on trade investment. Unemployment decreased from 16% 1994 to 4% in 2000. That was the first time in the full history. The ISEQ general index reached a max out of 10,000 points in April 2007 and fell to 1,987 points, by†¦show more content†¦They didn’t paid mortgage back to the banks. EFFECTS OF THE BANKING CRISIS: Home Prices Collapsed: In the late 2007, the home prices collapsed. When the price of the asset become too high far out of the line with fundamentals, however they must come down, and eventually the housing price bubble burst. Damage Public Interest: Irish crisis resulted in loss of trust in government institutions ant the capitalist economic system. Many of the households’ confidence in the financial system were shaken. Mortgage Default: At November 2010, if one family defaults it will be taken as pariahs. But if 200,000 default they are powerful political constituency. Emigration: The office of central Statistics estimated that in between April, (2009-10) 34,500 people left the county. It was also notable that many of them were Irish people. People move other countries except UK, EU or US. Government Emergency: In October 2008, the Irish government guaranteed all deposits. In 2009, the government had nationalized one of the three largest banks. Irish government injected capital into the other to banks. Student Action: Thousands of students, their parents on November 2011 descended on Dublin from around the country marched on Government building concerns about the reintroduction of third level fees. Other protests: Thousands of people marched against austerity in Dublin. Many labors protested in Dublin. Video game retail companies close their storesShow MoreRelatedThe Irish Financial Crisis Was Both Predictable and Preventable. to What Extent Do You Agree with This Statement?1113 Words   |  5 PagesIrish Financial Crisis has attracted much attention recently. Driven by booms in property and lending, it left the society with massive issues such as high unemployment, insolvent banks and huge government deficit(Kelly, 2010, P1). There are many debate surrounding on whether the crisis could be predicted and prevented. This essay will attempt to demonstrate that Irish Financial Crisis was both predictable and preventable. 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