2013 time to MOVE ON


The arrival of 2013 has brought some welcome good news if not seismic (unless the news is being described by our Enda Kenny!). The increase in customer spending over the Christmas period, the reported slowing down of the property crash and today the announcement by PTSB that it is to dip its toe back into the lending market in 2013.

 

However, the biggest thing to happen which will make the single largest contribution to the recovery of the Irish economy and restoration of the dignity of the Irish people is the passing of the Personal Insolvency Act 2012. If the banks participate in the insolvency process as it is intended and promised by the minister of justice, it will bring dramatic relief for ordinary people stuck in a household debt trap. It will give those ordinary people the opportunity to ditch most of the excess debt while securing theirs family home and their dignity. The physiological effect of this alone will boost the ability of people to think of other things rather then their debt burden. It will free them to begin to live again knowing that they have down the best they can regarding their debts and now they can move on.

If anything, what Ireland needs in 2013 is to “MOVE ON”. It has become obvious over the past 5 years in Ireland that nobody is willing to take a real hard look at what has happened  to the country because those who need to look are the ones to blame. So what needs to be done now is for everybody to move on. People need to stop looking to have someone to blame for the depression. Banks need to move on and start taking the hits on household debt that they a mostly responsible for in the first place. Bank negotiations should not be so difficult. The political and professional classed should start adding value to the country and stop feathering their own nests like they have been doing for so long.

Ireland is a small county and so easily fixed. We have generated tremendous political respect over the past few years in the way we have tried to deal with our problems. Now it is time that some of that respect is felt by the ordinary people through household debt relief, realistic bank negotiations, proper and full implementation of the Personal Insolvency Act.

Sometimes we forget people are the economy and if we provide people with the ability to survive they will do that and grow bigger, stronger and drive on the road to recovery. That road is in front of us and people want to get on it but they need help. MOVING ON will be the catalyst and our saviour!

Paul C Carroll FCCA

NEO Financial Solutions

Ireland Financially and Morally Bankrupt


So at long last the EU Commission and government is about to admit (again) that things are not getting better in Ireland (unless you are part of the political and professional elite who continue to rip our broken economy off). They are now admitting what we all have been experiencing for the past 5 years and will continue to experience while these fools are still in control of your country. And worse still is that they have revised their figures on growth 3 times in the past 6 months ….. all downwards! It seems that these people are clowns and just cannot do their job!

We still have falling property prices, falling income, no sign of urgent action on the household debt problems, refusal to address excessive pensions and salaries, increasing prices of utilities and anything else the government has its hands on!

Being the “good boy” in the Euro class has cost us dearly. It has robbed us of 4 years in the fight to overcome this Great Recession, cost us €64b in bank debt, given us unemployment approaching 20% and massive increase in immigration again!

We now need some simple but radical things to be done which include the immediate cutting of excess salaries and expenses of public servants to ensure nobody is paid in excess of €100,000, pass a law to have excessive pensions cut, a financial transaction tax should be introduced immediately, the utilities under control of government should be made reduce prices and immediate introduction of a debt forgiveness programme for anyone in negative equity! There a many more things to be done but these are starting points and targeted at the people at the top, those who are responsible for the mess and assistance for those who are suffering the most.

But I have no confidence in anything being done that will make things better and more fair! The main reason for this is that as long as the people in control and advising are the people who gain most from continuing to encourage the financial bankruptcy of the country we will be doomed to fail!

The people whom we have been brought up to trust and rely upon from priests to politicians to professionals have all slowly reduced this country to bankruptcy both morally and financially and it seems the majority of people seem to be happy to do nothing about it! I just wonder how long this will stay and when will people finally realise something needs to be done apart from talking about it?

Paul C Carroll FCCA
NEO Financial Solutions
paul.carroll@neofinancialsolutions.com

AIB Interest rate Increase part of the Enda Kenny “Celtic Comeback”??


The increase by AIB in their mortgage interest rates last week is another element of the scam that is continuing in this country by the elite professional and political classes. These classes are described so well in the recently published book by Shane Ross and Nick Webb The Untouchables.

Another element of the scam is that we must continue to pretend that things are getting better in Ireland. The economy is recovering, people are slowly recovering, property prices are stabilising, unemployment is stabilising, etc..  This is being peddled because it is important for “the Untouchables” to create this illusion about Ireland being the Good Boy in the class of austerity so their position of overpaid offices and professional fees continues.

How on this earth can it be justified that the bank owned by the state is allowed to put up interest rates on people who are already struggling except for the creation of an illusion that AIB will recover. We all know that the increase in the interest rates will make AIB worse and not better. It will simply cause more people to fall into arrears. It may also cause some people to reflect on why at all they should be paying anything on a loan which is possibly in excess of 50% greater then the value of the property it is on! Why Bother? Why Bother?

It seems the chief driver of the scam is none other than our leader and poster boy of “the Celtic Comeback” Enda Kenny. He is on the front of Time Magazine peddling the comeback scam and today insists that AIB are right in increasing rates to ensure its recovery! What about the recovery of the people? What about the Celtic Comeback of the people? Or do the people not matter as long as AIB and the other Untouchables are looked after? Is that what Mr. Kenny considers a comeback? AIB, BIO, Anglo, PTSB, EBS and Nationwide can all have debt forgiveness but the ordinary person cannot that is a comeback? I do not think so Mr. Kenny!

In the interview by Mick Wallace TD on the Marion Finucane Show on RTE radio 1 he said that one of the things that strikes him most about the Dail is how out of touch most people are there! Well it seems he is right on that one and the more Mr. Kenny goes on about the comeback the more Mick Wallace is right! Somehow we need to drag these guys back into the real world. Let them sample the “comeback” and see how it feels!

There can be no comeback unless excess household debt is addressed, the real level mortgage arrears are admitted to and the national current account deficit is addressed.

Paul Carroll FCCA

www.neofinancialsolutions.com

Mortgage Arrears 30% not 10% as reported by the Banks!


So the seismic shift that was brought home last June was a seismic figure of our leaders’ imagination. It is a shame that they do not use their significant powers of imagination to put a realistic plan together to get this country out of the depression we are in right now.

My biggest concern now is not how we are going to get back the money we paid into our Banks and then out the back door to private investor and banks in Germany, France, UK, US and further afield. The real worry now is where we are going to get the money to give the banks the second bailout or hopefully “bail in” this time. When I talk about a “bail in” I mean when funds are put into the banks they actually stay in the banks and are used to give people the debt forgiveness they need.

I have taken a short unscientific look at our ever growing client list and a sticking thing to come from the review is that over 65% of them have come to us BRFORE they have gone into arrears. They know they are heading into trouble because of falling salaries, falling rental income and falling savings. Another big reason for people coming looking for help is the ending of interest only periods and usually that means that repayments are going up by as much as 3 times when income is falling.

So from a banking perspective the numbers they give us about accounts being in difficultyare considerably more then they admit. It is our view that there are two reasons for this, firstly as described above they do not know of the pending trouble of people and the second they massage the published figures anyway!

So it seems the figures given by the central bank recently about 10% of mortgages being in difficulty are grossly underestimated (Central Bank report March 2012)  and/or reported. So whatever about recovering the €64b paid into the banks to date to “save” them I believe the next €20b or so for the impending “bail in” is the real problem.

The first €1b of that €20b could be gathered on Monday 1st October by refusing to pay the AIB bond which is up for payment. That would be a good start!

Paul C Carroll FCCA

paul.carroll@neofinancialsolutions.com

www.neofinancialsolutions.com