€6 billion bailout for home loans ‘will end crisis’

A €6 BILLION bailout for householders in mortgage arrears that would allow those hopelessly indebted to walk away from their home loans would solve the current crisis, according to the economist credited with predicting Ireland’s property demise.

UCD economist Morgan Kelly has also predicted house prices will most likely fall much further before bottoming out. However, he warned commercial property prices will probably see “big falls” beyond what has already taken place.

Speaking at the Irish Society of New Economists conference yesterday in Dublin, Mr Kelly called for some radical measures to tackle the growing mortgage crisis.