Oireachtas Joint and Select Committees
Wednesday, 26 November 2014
Joint Oireachtas Committee on Finance, Public Expenditure and Reform
Overview of Banking Sector: Central Bank
3:00 pm
Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance) | Oireachtas source
I put it to Professor Honohan that to resolve this conundrum we must make housing affordable or give people the level of income that will allow them put a roof over their heads. This could be done by controlling prices, increasing incomes or a combination of both. If one of these things is not done the circle cannot be squared, which leads to this conundrum. People feel excluded by the prudential 20% deposit issue but the Central Bank is afraid not to have the prudential buffer because the alternative path may lead to a credit bubble. I suggest the circle cannot be squared.
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