December 2, 2011
Yesterday the possible failure of a major European bank is likely to have been the trigger for the central banks of the world to hit the panic button and in so doing, admit that the European banking system is in tatters.
Against this background it is interesting to look at what was happening ten and five years ago in the archives. From 5 years ago, I have put up a webchat I did on RTE in November 2006 just after the Popes Children documentary.
It reveals the levels of denial about the housing/credit/banking boom. For those concerned about the Euro today, question 4 is particularly interesting.
The article from 10 years ago, December 2001 is on the budget. It is interesting that back then the article was pointing out that the budget was a sideshow given that the budget in 2000 led to â‚¬2billion being injected in to the economy, while private banking lending was running at 10 times that at â‚¬24 billion the same year.
We can see that the banking chaos of today was brewing in this lending figure ten years ago. The Irish banking crisis, as I have said over and over again, started in 2000 not 2008.
Hope you enjoy the trip back in time.