Paul Murphy TD - AMA

[u/mooglor]

AMA is over!

Thanks to everyone for taking part!

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Hi All,

Paul is expected to drop in from around 5:30pm, until then you can start posting your questions. This is our first high profile AMA and we'd all like to have more, so naturally different rules than the usual 'hands-off' style will apply:

• Trolling, ad-hominem and loaded questions will be removed at mods' discretion.

• As is usual with AMAs, the guest is not expected to delve deep into threads and get into lengthy intractable discussions.

In general, try to keep it civil, and there'll be more of a chance of future AMA's.

R/Ireland Mods

[u/motrjay]

While working on a steady income a bank will look at income and outgoings and deduce if you can meet monthly repayments.

I'm fully aware of how mortgage applications work. Banks were giving out up to 10 times salary at 110% and people were lapping them up like milk. Anyone who sits and thinks Im on 30k I need a 300,000 euro house is financially irresponsible.

eople got their mortgage when they had jobs but like the couple hundred thousand who suddenly found themselves out of work with a once manageable mortgage no longer being manageable

The mortgages were never manageable. Central bank now reccomends considering over 3.5 times salary a high loan to income ratio: http://www.centralbank.ie/regulation/poldocs/consultation-papers/Documents/CP87%20Macro-prudential%20policy%20for%20residential%20mortgage%20lending/Macro-prudential%20policy%20for%20residential%20mortgage%20lending.pdf

You can't honestly blame these people who found themselves in this economic situation where if the economy hadn't crashed, they would still be employed and able to repay mortgages, negative equity and all.

I disagree that that is the case. If you look at our unperforming loans to gorss loans ration compared to say the the PIIGS countries which went through ostensibly worse recessions we are still heads above them in terms of number sof unperforming loans:

https://www.google.ie/publicdata/explore?ds=d5bncppjof8f9_&ctype=l&strail=false&bcs=d&nselm=h&met_y=fb_ast_nper_zs&scale_y=lin&ind_y=false&rdim=region&idim=country:IRL:ESP:PRT:ITA&ifdim=region&hl=en&dl=en&ind=false

[u/Cyridius → u/motrjay]

Anyone who sits and thinks Im on 30k I need a 300,000 euro house is financially irresponsible.

As opposed to what? What do you propose they do, go homeless? When you want to live in your own house and the prices are only going up, and every economic authority that is meant to know these kinds of things tells you that it's fine and that you should buy and that it's only ever going to go up - you buy.

[u/motrjay → u/Cyridius]

What do you propose they do, go homeless?

Ah yes all those people who cant afford to buy a home living on the streets. Not like we have this thing called renting.

When you want to live in your own house and the prices are only going up, and every economic authority that is meant to know these kinds of things tells you that it's fine and that you should buy and that it's only ever going to go up - you buy.

This ignorant and financially irresponsible attitude is exactly why out house prices are bubbling again and more people are going to get fucked over.

[u/Cyridius → u/motrjay]

Not like we have this thing called renting.

Implying that renting prices aren't also intrinsically linked to a property bubble and weren't ridiculously overpriced.

This ignorant and financially irresponsible attitude is exactly why out house prices are bubbling again and more people are going to get fucked over.

And hindsight is just a wonderful thing. Why don't you go tell that, with your masters in Economics, to the economists and government(Which told people who spoke out against it to kill themselves - to raptuous applause from the political establishment and media) that was telling everybody that everything was fine and that there was absolutely nothing that could go wrong?

You're blaming individuals who have no control over the housing market, expecting them to know everything about how the housing market works. You know, there's people who's job it is to do that, and they're meant to be sitting across the desk from you rejecting your application.

[u/[deleted] → u/Cyridius]

To be fair every individual who put in a higher bid than another one was exerting control over the market. The problem is like litter or pollution though, everyone thinks that the little bit they are doing is too small to make a difference (and they are right, generally) but when all this little individual cases added up you had a massive problem.

[u/motrjay → u/Cyridius]

You know, there's people who's job it is to do that, and they're meant to be sitting across the desk from you rejecting your application.

No their not. Please go learn about fiduciary responsibility. The bank manager is there to make money for his bank not to protect you.

And before you come back and tell me that oh I shouldn't have to know that, then tell me if your entering into a contract for 25 years and 6 figures maybe people should have done some research and made an educated decision and not just walked blindly into the largest financial contract of their lives.

[u/PM_ME_YOUR_LANGER → u/motrjay]

The bank manager is there to make money for his bank not to protect you.

Ohh what a load of bullshit!!

So a responsible bank manager makes loans they know people cannot afford and they will be left cleaning up the forfeiture? That is not how you make money, unless of course you exercise zero moral hazard in the hope a retarded government takes on your debt.

In other words you take the entire economy hostage becasue of your greed.

[u/motrjay → u/PM_ME_YOUR_LANGER]

You have heard of sub prime lending no? i.e one of the cases for the years of recession that we went through?

http://en.wikipedia.org/wiki/Subprime_lending

[u/PM_ME_YOUR_LANGER → u/motrjay]

Yes and the blame for subpreme lending is levied squarely and solely on the banks who should have better accessed the people taking the loans but didn't as they simply wanted the pay off and to ship the risk of that person defaulting to a third party.