Is Ireland setting itself up for a crash with new housing bubble?

Prices are up 50% in Dublin since 2010 because the system is flawed, says Stefan Gerlach

Ireland’s housing market collapsed less than a decade ago, but has lately been experiencing a blistering recovery in prices. They have risen in Dublin by 50% from the trough of 2010. Is Ireland setting itself up for another devastating crash?

The collapse of asset bubbles carries massive financial and social costs. With construction activity and investment spending grinding to a halt, sharp recessions — which cause tax revenues to fall, even as surging unemployment demands increased social spending — are unavoidable.