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http://www.irishtimes.com/newspaper/finance/2012/0613/1224317808046.html
?ts=1339585744
Lending to developers was the rotten core of Irish banking and it ultimately collapsed Anglo and led to the virtual nationalisation of the financial system
COMMENTATORS HAVE tended to interpret the Irish property market bubble as a homogeneous phenomenon. This approach needs to be seriously questioned in order to identify the dominant virus that produced the collapse of the Irish banking system.
After falling significantly in 2001, property prices started to move upwards again from 2002, heralding the arrival of a second phase of the property market boom – a boom that very quickly metamorphosed into a bubble.
The character of this second phase was quite distinct from the first, which prevailed up to 2000. Mortgage loans to finance the residential property market grew again at a fast pace, aided by the new incentives of low interest rates and financial innovations in the form of tracker mortgages, 100 per cent (and higher) loan-to-value mortgages and extensions of the length of loans to 30 years and more.
?ts=1339585744
Lending to developers was the rotten core of Irish banking and it ultimately collapsed Anglo and led to the virtual nationalisation of the financial system
COMMENTATORS HAVE tended to interpret the Irish property market bubble as a homogeneous phenomenon. This approach needs to be seriously questioned in order to identify the dominant virus that produced the collapse of the Irish banking system.
After falling significantly in 2001, property prices started to move upwards again from 2002, heralding the arrival of a second phase of the property market boom – a boom that very quickly metamorphosed into a bubble.
The character of this second phase was quite distinct from the first, which prevailed up to 2000. Mortgage loans to finance the residential property market grew again at a fast pace, aided by the new incentives of low interest rates and financial innovations in the form of tracker mortgages, 100 per cent (and higher) loan-to-value mortgages and extensions of the length of loans to 30 years and more.
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