Daft Property - Irish Property News

Reports blame Cowen for stoking fires of 'meltdown'... TAOISEACH Brian Cowen's overheating of the economy and failure to deflate the property bubble when he was Finance Minister will be identified today as contributing to the banking crisis. The damning findings will be contained in two reports into the banking crisis, which senior coalition sources last night said were "devastating". Contrary to the Taoiseach's version of events a fortnight ago, where he sought to absolve himself of blame in a major speech on the economy, Mr Cowen's budgetary policies are singled out for criticism. The reports also: * Attack bank directors for allowing the financial crisis to develop. * Criticise the Financial Regulator for being too lax. * Find the Central Bank failed to take responsibility in the overall stability of the banking system. * Point out economic projections made by a number of organisations were wrong. The report by Central Bank governor Prof

Country now paying for 'one hell of a borrowing binge'... WE HAVE been on "one hell of a borrowing and spending binge" in recent years and now we have to face up to a radical change in our standard of living and expectations , the Céifin conference heard. Jim Power, chief economist with Friends First, said the Government's role in allowing spending to grow by 10-12 per cent a year in recent years was "absolutely criminal" and we would now pay for that mismanagement. Personal debt rose from €20 billion to more than €140 billion between 1999 and 2007, he said. "That is . . . one hell of a borrowing binge." Asked about the role of the banks in fuelling spending, Mr Power said he had worked as a banker for 20 "very unhappy years" and the incentivisation structures always worried him. "You were incentivised on the quantity of what you sold, not on the quality. I think the incentivisation structure did encourage irresponsible behaviour

THE GOVERNMENT has no plan to deal with the biggest economic crisis in a quarter of a century and lacks the conviction to win public confidence, Fine Gael leader Enda Kenny told an opening session of a two-day special conference of his parliamentary party in Co Clare yesterday. Warning that the next general election "may come a lot sooner than expected", he told his colleagues that if they were "united, disciplined and tough" they would win power in the next Dáil. Focusing on the Government's approach to the economy, Mr Kenny said people were frightened because nobody seemed to be in charge. "In response to the biggest economic crisis in a quarter century, the Government first denied, then dithered, then went on holidays ." He added: "All the Government seems to be able to do is congratulate itself - in advance - for tough actions they haven't yet taken, and they'd never have needed to take if they'd done their job well enough in