Get set for a new year chill, but don’t put on the hairshirt just yet

There are too many vacant houses as it is and builders may sit on them for years rather than sell cheaply.

A severe slowdown in construction would hammer jobs and Government revenues and in itself could tip the economy into recession

IRELAND is facing into its most difficult economic time for more than a decade and we are likely to hear quite a lot of bad news this year. No amount of wishful thinking can deny that, although some angry people with much to lose if they have over-extended themselves are blaming the media for talking us into a crisis. Media commentary may have some part to play in creating a climate of anxiety, but it is relatively small; the media should not ignore the evidence in front of it in the hope that by doing so things mysteriously will take a turn for the best. Here’s my take on some of the major economic issues facing us in 2008.