Saturday, February 27, 2010


Sunday Times Money section, 31 July 2005:
"The lenders who have come up with the 100% [mortgage] have balanced the risk. Of 100 people that take out these mortgages, maybe 95 will be okay and five will get in serious trouble and the banks can take care of that trouble." post, 8 Nov 2006:
"You can find extensive, informed, articulate, balanced and entertaining commentary on the impending collapse of the Irish property market [at]." post, 9 Nov 2006:
Further speculation about the future direction of house prices is banned on Askaboutmoney.

Irish Independent, 18 August 2007:
I would invest in AIB or Bank of Ireland rather than putting money on deposit with them.

AskAboutMoney thread, January 2009:

Pat Neary distinguished himself as the Prudential Director of the Financial Regulator before he was appointed. Had I been on the interview panel, I would certainly have chosen him ahead of a 27 year old recent PhD graduate.
The academic qualifications of someone at a very senior level are of little relevance.


Sorry, I pay no attention whatsoever to Morgan Kelly who suggested burning the €1.5 billion instead of putting it into Anglo.

Sunday Times Money, 8 Mar 2009:
If you’ve a real need to buy now – for example, if you are starting a family – don’t allow the fact that your job is a bit uncertain to put you off. If the worst happens, the government has ordered AIB and Bank of Ireland to lay off homeowners in arrears for at least a year, while other lenders must give them a six-month breather. post, 3 June 2009:
I still believe, that as a general rule, it is a good idea to buy your own home. With the benefit of hindsight, this would not have been a good idea over the past 5 years.

[..] I have made it very clear that, with hindsight, it would have made much more sense over the past few years to rent rather than buy. post, 11 Oct 2009:

"People ask now why did we not listen to the economists who warned of the housing bubble and the economic crash? [...]. Their warnings were dressed up in such stupid, sensationalist language, that it would have been like taking the economic forecasts of the Sunday World seriously." post, 22 Dec 2009:

The paperwork for money laundering is hugely inappropriate. Under the law, Charlie McCreevy would have had to provide a passport and two utility bills. Everyone in the Irish Nationwide knew him. I would have no problem with them not complying with this law.

“It would be wrong to ring-fence the home and mortgage and do a debt settlement on the other debt. Permitting such a proposal would encourage people to allow their other debts to expand in advance of applying for debt settlement while making normal capital and interest repayments on their mortgage.”
“Calling it “the family home” in some way confers a sacredness on it. We should not be doing this. If people lived a very high lifestyle and are now overborrowed, then they have to pay the price.”

“People buying their first home have very big expenses in the first few years. I recommend that they start with an interest-only mortgage. ”
“Paying interest only, means that you have more money with which to adjust to the life of home ownership. If you are in the housing market for the long term, which most people are, then what happens in the short-term to prices is not very relevant.”

“For those, interest-only in the first few years of their mortgage makes sense. They don’t have to blow the repayments saved on new cars and drink. They can use it to improve their home. They can even save it elsewhere to rebuild a savings fund.”

“There is an old-fashioned idea that mortgages should be paid over 20 years and people should start contributing to a pension at age 21. These ideas need to be challenged and reviewed from time to time.”

“IF YOU are investing in property, you should take out an interest-only mortgage, unless you are not on the top tax rate. In particular, you should always pay off your home mortgage before making any capital repayments against your investment property. You should borrow the maximum amount possible, bearing in mind the usual warnings about borrowing to invest. If you have an investment property, you should have an indefinite interest only loan. In other words, you should never pay it off while you still own the property.”

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