the luck of the irish?

[eri]

food for thought

for those that think we should spend our way of the recession

if it doesn't work...

Ireland has been cutting spending and hiking taxes since late 2008 and has plans to keep doing so through 2015. Next year's target is 2.2 billion euros ($2.9 billion) in cuts and 1.6 billion euros ($2.1 billion) in extra charges, including a hike in national sales tax to 23 percent and introduction of a new 100 euro ($131) tax on every property.

But the country's finances this year are seriously out of whack: It is spending 57 billion euros ($74.5 billion), including 10 billion euros ($13 billion) to keep its five nationalized banks afloat, but collecting just 34 billion euros ($44 billion) in taxes.

http://mdn.mainichi.jp/mdnnews/busin...bu025000c.html

[donna]

and in Greece.....

An unprecedented exodus of capital from Greece – peaking in a record number of withdrawals from banks in recent months – has exacerbated the liquidity crisis now wracking the recession-hit country.The latest figures released by the Bank of Greece reveal that in September and October alone investors pulled €12.3bn (£10.3bn) from domestic banks, spurred by fears of political uncertainty and economic collapse.

Source

It is this activity that forces banks to take action - e.g. not open for business - have 'bank holidays' to stop people taking their $$ out. Can this happen here in NZ? Absolutely - however the banks here would act faster and lock down access to ATMs, and close their doors. Do you have enough cash to last you for a couple of months? Most of us don't have physical cash as we rely on the EFTPOS - and that pleases the banks as they can shut down access and avoid mass redraw in an instant.

cheers,

Donna

[mattinvestor]

the maths don't make sense. It's pretty silly isnt it.

What shocked me was the massive hike in sales tax.. *ouch*

I hope these kind of conditions don't happen in Aus and NZ