We have watched this week as the Irish Government bail-out of the banks, through a Guarantee Scheme, led to a rebound in the Irish Stock Market.
We really don't know what is going to happen next. Will the government bail-out work in the longer term? What will happen if it does? What will happen if it doesn't? Will the tax-payer have to take a large hit? Will a bank fail? No one knows for sure what will happen.
People asked me all week how this will affect the local housing market. At this point I don't know. Anyone who says they do know is just guessing. I think that if the plan works and credit is freed up a bit, then more houses will sell. No-one expects house prices to rise on account of it though!