Big day today for Europe - Greek Austerity Vote

Its a big day today for Europe.
I know its a big day for Greece but its potentially a pivotal day for Ireland as well.
If the Greeks do not vote through the austerity measures then they have as good as defaulted. At that point it makes more sense for them to leave the single currency. That way they can set their interest rates, devalue their currency and address some of their problems without the straightjacket they are in now.
Notice I say leave the single currency. Their is no pressure on them to leave the common market.
If they do vote in favor then I can only imagine that the streets of Athens would be a no-go zone for the next week.

For Ireland ( a country that was more than willing not to blindly accept Europe in two referendums) this could be a big moment. If Greece defaults then we will be in the firing line along with Portugal as the next to go down.
And with Greece blazing a trail (particularly if they leave the single currency)then we have a precedent to play with. It could strengthen our bargaining position against Europe and force the ECB into accepting a policy of restructuring. Of course if we are allowed then we may be in technical default as well.

If Greece accepts the Austerity measures then we will continue to kick the can down the road, but I don't see how it helps all of us in the long run. The problem remains in place, to be born by taxpayers that are rapidly running out of patience. If Greece does accept Austerity then it will be at the expense of voters in other countries; and those whose economies are relatively sound but experiencing cuts and unemployment may lose patience with the process. Indeed that could easily become an election platform for the opposition.

Ending this post prematurely as the vote is on right now: 20 For / 18 Against so far!

Update: Motion in Favour passed by 4 votes. Will be interesting to see the counterfactuals in years to come

Repossessions

Was Listening to Liveline last week
A man who had his house repossessed has vowed to picket the house for the rest of his life, presumably unless he is reinstated into the property on reasonable terms.

Part of his reasoning is that he should never have been given the mortgage in the first place. Thats quite a true statement. I wonder if at the time, had he been turned down for a mortgage, would he have gone on Joe Duffy to bemoan the fact that he couldn't get financing.

Hearing the phrase, "they shouldn't have given me the money" hardly ignites sympathy in peoples minds, but it is nonetheless a correct statement; so why did they? Our personal solvency laws provide that the borrower remains liable for the full value of the mortgage, even if the house is sold.

In the US the borrower can hand back the keys which closes out the mortgage. This should mean that borrowers would be more discerning as they would stand to lose money as well.

Here the borrower is on the hook for the full amount, which means that the lender can do less due diligence and still make a reasonable assumption that they will get back the bulk of their money. In addition, they have an incentive to sell the house and realize the funds ASAP, rather than hold out for an offer that is a reasonable market price, which would reduce some of the outstanding debt of the borrower.

We are going to see more of this behavior as the number of repossessions rise, not less. There is a substantial danger that we will marginalize those people and their children and in doing so reduce society's respect for personal property.