So, what’s the plan of attack?
First, the government has put forth a $7 billion bailout of its banking system. The top three banks will get the money, reports Stephen Beard for Marketplace. It’s not without strings: the banks will be required to increase mortgage lending by 30%. It’s a tall order, since property values are falling sharply while unemployment is sky-high.
Next, the Irish Prime Minister Brian Cowen promises a program for the recovery of the economy with a $1.04 billion venture capital fund to boost enterprises and re-orientate the economy toward what Cowen calls the “knowledge economy,” along with wind and hydro energy, according to The Age.
The Irish ETF experiencing the deleterious effect of an economic downturn:
- NETS ISEQ 20 Index (IQE): down 47.1% since Aug. 22 inception