tag:blogger.com,1999:blog-8817171247555815363.post646971831540230473..comments2024-03-26T05:57:44.937+00:00Comments on True Economics: 1/8/2013: Strategic defaults...TrueEconomicshttp://www.blogger.com/profile/07350536454228478974noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8817171247555815363.post-81823020248579256972013-08-09T17:01:32.320+01:002013-08-09T17:01:32.320+01:00Mr Blogger.
There is strategic default in Ireland...Mr Blogger.<br /><br />There is strategic default in Ireland. The figures are clear about it. If I can put ny view forward.<br /><br />There has been a mess in the banking system, with them seeking money back from first small businesses and then the government since 2008. More critically perhaps there is a huge delay in an already slow court system, and has been since 2008 too. <br /><br />As a consequence many people have learned that there is no consequence for not paying. Bills, wages, rents and for houses too. <br /><br />Solicitors in particular are aware of it. The consequence is that there is a shunting of defaults along the line. Some are deliberate, some are involuntary.<br /><br />What I am saying that in midst of the real and genuine distress there have been people who have used the confusion not to pay. The poor mouth, an beal bocht, has been hauled out by people who could pay but are utilising the narrative of the genuine distress of the many to avoid paying.<br /><br />I have had repeated direct experience of this.In private I would be willing to elaborate.<br /><br />On the subject of mortgages there have been no mass evictions in Ireland, no repossessions and no mass distressed sales and still there is no strong real threat of any of this.<br /> <br />If I can give the example of Spain, on the other hand which has many parallels to Ireland in terms of the nature of its property related crash has a just a 4% distressed mortgages rate but the unemployment level there is far ,far higher. Practically double the Irish rate. And in general wages and benefits are lower. Spain should be worse than Ireland but it isnĀ“t.<br /><br />(Link follows in Spanish).<br /><br />http://www.elmundo.es/elmundo/2013/06/18/suvivienda/1371544483.html<br /><br />Evictions, repossessions and distressed sales do exist there. This is a major difference, though not the only one.<br />Joe Rhttps://www.blogger.com/profile/08521495214688176485noreply@blogger.comtag:blogger.com,1999:blog-8817171247555815363.post-84928832401110945102013-08-01T22:02:45.573+01:002013-08-01T22:02:45.573+01:00I don't know the extent of the problem but I c...I don't know the extent of the problem but I can confirm that a close relative with several BTL's in Dublin has 'strategically defaulted' for the past two years or more. He didn't give personal guarantees and is collecting the rents and using them to fund his living expenses and pay off a commercial loan on a (vastly overpriced) business property for which he had given a personal guarantee. He is quite willing to hand over the keys of the BTL's (all in very rentable locations) but PTSB has just written to him with vague threats which he duly ignored. Not saying this proves anything but any BTL investors who haven't given personal guarantees may not be exactly quaking in their boots with thoughts of the new legislation.Bunburynoreply@blogger.com