Ireland’s Crisis, ‘’The Real State Bubble’’

Since 2008, Ireland has been facing its most devastating crisis. A crisis that led to the need for help of the I.M.F. England has also offered help to the friendly neighbor. But their pride turned them blind, making them not to accept either help. They wanted to survive from the crisis on their own. A strict budgetary planning was made to reduce the outgoing. During months they hardly fought against the crisis, but it wasn’t working. Ireland was not getting back, its economy once called the ‘’Tiger’s economy’’ was now threatened by bankruptcy.

Ireland’s crisis was a result of its selfish consuming. People were spending their money in properties. The economy was driven by the constructions; they were getting rich by selling houses to each other. People would go to the banks and ask for loans. They would get a $400,000 loan, buy a house and sell it for $800,000. But at a certain point it started to stop working. People stopped to buy houses. Therefore they didn’t have the money to pay for the loans. The banks started to get money from the government. The crisis had begun.

But Ireland’s problem expended. The crisis now has interfered in other countries. Irish people are trying to escape from the crisis by leaving Ireland. Immigration process started. They are spreading throughout all Europe, mainly in England. That’s way Irish population is one of the biggest there.

Even if they accept the help of I.M.F they will still affect other nations, actually the whole world. The global stocks will lift and the euro as well. The amount of the package is about €80 billion to €90 billion, or $109 billion to $123 billion. However, they don’t have another choice. They have to accept the package. The last months proved that they are not capable of resisting from the crisis without help. It’s the only way out possible to escape from it.

Greece had the same problem last spring. The difference is that they accept the help. Europe gave €110 billion to Greece to save it from bankruptcy. Now they are rebuilding their economy, slowly, but progressing throughout time.

Ireland won’t be able to sustain itself much longer. They won’t escape from bankruptcy if they reject the money from M.F.I and England. All they have to do is to accept the money and try to get back on its feet. Ireland’s future is on their own hands.

Bibliography

''After Months of Resisting, Ireland Applies for Bailout'', Landon Thomas Jr. The New York Times, Global Business. 21 November 2010. 1 December 2010

"Britain Pledges to Support Ireland in Debt Crisis", James Kanter and Steven Erlanger. The New York Times, Global Business. 17 November 2010. 1 December 2010

"Europe Fears Debt Crisis Is Ready to Spread", Landon Thomas Jr. and James Kanter. The New York Times, Global Business. 15 November 2010. 1 December 2010

"Irish Economy: Froom boom to bust", Olivia O'Leary. YouTube. 28 July 2009. 1 December 2010