Talking to my tour bus driver Newton, I discussed with him the current state of the Irish real estate market. One development he knows of, 20 houses were built and NONE have sold.
Prices are falling (the low rate contagion spread worldwide it seems) and the construction business is grinding to a halt. Newton did tell me there are currently 24 tower cranes up and running in Cork which was interesting. But this just reaffirms what I mentioned before – construction related to government stimulus and contracts will continue as Keynesian politicians try to “Roosevelt” their way through the coming recession.
This won’t work (as it didn’t before – the war and the ensuing baby boom fixed that problem) but it will be done. Global construction, engineering, and raw materials firms will benefit. Commodities will still be “hot” as Jim Rogers describes them in the title of his book.
On a personal note, today I almost kissed the Blarney Stone (got no action as I told my friends). The assistant there pulled me away before I could make contact but I almost kissed it. The castle is beautiful as was the old king’s castle of Bru Boru. I have some great pictures I will post to my Flickr blog soon.
See you all soon back in Medford…
from Killarney, Ireland