It’s Not You, It’s SME


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In a talk he gave to UCD’s Economics Society last week, Professor Morgan Kelly gave his thoughts on the Irish economy, his first public comments in three years. He had some grim possibilities in mind regarding SMEs and the dumbing down in Irish universities.

Here are some choice quotes:

“The crisis we’re told is over. What have we learned from that? The official narrative that has appeared is very clear. According to this, there were two bad people, Fingleton and Fitzpatrick.”

“This is Ireland, guys. We don’t do competence.”

“All the stuff that happened, all the stuff we talked about. The property boom and bust, the bank collapse, the state bankruptcy. As far as official Ireland is concerned, this was like a bad dream.”

“There’s going to be a big cleanup. It means foreclosures on mortgages and it means dealing with small business loans. What you had during the bubble, owners of SMEs [Small and Medium Enterprises] borrowed a lot to buy property. That was the way you made money back in the happy times. So a lot of these companies have got very big losses on property and they’re basically surviving through bank forbearance. Banks aren’t calling in these loans.”

“We’re going to see a lot of SMEs go under.”

“It’s an enormous problem that no one seems to care about.”

“But even if they [Germany] give us the money for the recapitalisation, the collateral damage to the Irish economy is going to be huge.”

“We are walking into exactly the same situation we were in before with loans to developers. We could see this coming from a long way off. It was going to be a big problem. But in the end Anglo goes under. There’s complete panic. There are midnight meetings. People do very stupid things and it looks like we’re going to face this once again.”

“By failing to produce well-trained graduates you are screwing up your economy in the long run.”

Previously: Morgan Kelly Takes Out Bearded Man In Extra-Judicial Killing

Morgan: A Suitable Case For Treatment

Five Years

We Didn’t Have A Clue

20 thoughts on “It’s Not You, It’s SME

  1. What Goes Up..

    *Walks slowly back out of the room*…..
    *Jogs briskly out of the building*…..
    *Runs quickly to the car*…..
    *Drives like a manic to the airport*…..


  2. Prof Monkey for a head


    In other breaking news the sky is blue and the revolves around the sun.

    1. Medium Sized C

      Just while you are there, he quite clearly called the crisis BEFORE it happened.
      This is the guy that Bertie said should “kill himeself.”

      So we are all clear, that is FORESIGHT. The opposite of hindsight.

    1. pasta

      There is no mention if Irish college students being involved here. Only American kids who can’t handle their liqour.

  3. pasta

    In the other Q+A video Morgan makes the point that there are too many administrators and not enough acedemics. At the 20 minute mark he says that the universities are now the same as the Health Service in that they are not there to provide education anymore than the HSE is there to provide health. He says “We are there to provide BMW’s or preferably Range Rovers to senior administrators and that’s what the business is at”.

    1. sendog


      There is a massive section of middle ireland whereby this recession hasnt touched them at all.

      The majority of these people are middle management throughout the public service and private sector.

      Its business as usual for this cohort. If anything it was this section who actually gained from the recession.

      And these are the people who will continously vote FF/FG/LAB so they can protect themselves. And like wise the parties play straight to this section of society.

    2. Emmet Fox

      Education starts at 26:10. Apart from his narrow position that education is all about economic growth its a pretty good analysis. Another perspective could have it that a more critical and politically oriented education system instilling critical dispositions early on in education might have a provided a critically astute electorate who would not have voted in the short-termism and bubble-fuelling foolishness of the FF crowd.

  4. Clampers Outside!

    I liked the bit where he says “OK, so what do we do now?” :)

    thanks for that, it’s not all doom n’ gloom. Everyone should email that to their TD and ask what they’ll do for SME debt…. better than doin’ nothin’

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