Sunday, November 21, 2010
Ireland swallows bitter pill, asks EU for loan
This article is about Ireland had to ask the EU for a massive loan to help get its economy back on track. Ireland had joined Greece as one of the worst economies in Europe. The crash of Irelands economy is surpising becasue only a few years before is was booming, other European countries were jealous. This reminds me of the Great Depression in the early 1930's, there was a period of greatness in the late 1920's in the American Economy but all good things come to and end, as we can see with Ireland and the US in the 1930's. Ireland denied that it needed a bailout but now it is clear they need help with 20.5 billion is deficit. Irelands banks are loosing deposits and stuggling to borrow funds on open markets.
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6 comments:
This kind of makes sense. The entire EU is connected, and their economies even more so, probably mainly because of proximity. I'm interested to see what other countries will do in response to Italy's crisis, following the problem Greece had, which peaked during the summer.
Hopefully all the other countries will take heed and be more conscious of their budgets and funds, but I don't really know if this has the potential to be like the domino effect around the world when the U.S. went through the recession.
It seems like one by one, the EU members are experiencing collapsing economies. It's interesting that in such a short period of time, the Euro went from being "the next big currency", at about double the dollar, to a deflated currency (less than 1.4 to the dollar). I seem to remember a whole lot of hype and concern from the major news stations about the rising euro back then. To be honest, if I was Germany or France, I'd be annoyed but I suppose that they too have plenty of economic woes at this point.
I was in Ireland for 4 days this fall and the wedding I was at was the time for people to actually enjoy life. Every day we turned on the radio, the news stations held endless discussions about the economy. Even the people never stop talking about the economy. The Irish as a whole, unfortunately, have become more depressed with the onset of these economic whoas. I remember my uncle in Dublin was over the moon two years ago, telling our family that the Irish economy was thriving because it was worth about 14 trillion. The tourist industry was still skyrocketing, people were not at all hesitant to buy expensive luxuries, etc. And now look at what's going on. It is a shame, especially when you have been there and talked your relations about it.
It's shocking to see such a major economic turn. I agree with Alice. Due to the proximity of the nations, I wouldn't be surprised to see the economies of other EU nations crashing as well. This, in turn, will cause an international domino effect unless we do something about it. I believe EU should give the loan but Ireland needs to take more caution when it comes to their economy.
By the way, Ireland denies that it needs a bailout yet asks for a massive loan to help get its economy back on track?
I definitely agree with what people above me have mentioned. In addition, I'm slightly concerned regarding the funds of the EU. There is a direct relationship between the economic status of the European nations and the EU. The EU is there to help make Europe prosper in general, but if every collapsing economy asked the EU for a loan...then what would happen?
But of course if this loan is approved, it will be a big factor in preventing the possible domino effect. It won't stop it, but it will help. I feel that Ireland should focus more what it can do on its own to alleviate the deficit.
woes*
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