The Irish Central Bank (CBI) isn't everyone’s cup of tea. Could be something to do with the fact that they dozed through the build-up to our current economic crisis. Or that our commercial banks had plunged into bankruptcy just months after the CBI assessed them as being in rude financial health. In fact many observers, myself among them, used to ask why we needed a central bank at all seeing as we don't have our own currency any more.
Well, a stunning new report silences the begrudgers in a single stroke and demonstrates conclusively the value of this excellent (if highly expensive) organisation.
For example, in a shocking discovery, the authors tell us that “the rise in unemployment, wage cuts, and increases in interest rates have acute implications for people at a personal level”
Well, who could have guessed?
And then there’s this finding which, honestly, left me stunned: “The severe decline in the performance of the Irish property sector allied to the post-2007 global economic down-turn has had a distinctly harsh impact on the Irish economy”
Crikey! Did you know that? An Irish property bust? Well, it’s news to me.
And, based on these dramatic findings, the report concludes with an ominous forecast which will bring the country’s current celebratory mood to a jarring halt. “This suggests that many Irish households will soon experience difficulties with their mortgage repayments”
You know, I hate to say it, but they could be right. Just maybe.
Anyway, with such original research, dramatic findings, and innovative conclusions, I think the CBI has fully demonstrated its value, once and for all.
Ok, sarcasm off. The CBI, like the rating agencies, excels at arriving at a wake and pronouncing the corpse to be dead. They are totally useless for anything else. Armies of economists, at enormous cost, labour to come up with useless rubbish like this while the country flounders. I despair.