LIKE BANK ECONOMISTS AND FINANCIAL ANALYSTS?
I, too, have experienced your feeling of frustration at the “There is no bubble” crowd, David McWilliams.
I note your bank economist opponent in this 2003 debate cited low interest rates to help justify “This time it’s different in Ireland.”
Low interest rates were indeed the line fed to unsuspecting buyers to make their big mortgages appear to be more manageable here, too.
However, in the days when interest rates touched 20%, inflation was running at not much less. I invite bankers and others who used ‘low interest rates’ (sic) to sweeten impossible deals to provide their clients with real interest rate comparisons, that is, to adjust comparative interest rates for inflation if they wish to give the true situation. Then they’ll have to admit that in the low inflation environment of the last ten years or so, real interest rates have, in fact, been quite high.
But when economists and analysts’ salaries depend on mouthing platitudes and spouting lies to earn their salaries, they’ll do just that. They’ll continue to defend the indefensible.
Hullo, Chris Joye; hullo Rory Robinson.