tag:blogger.com,1999:blog-6024955889759249523.post4672915782002733843..comments2023-11-05T08:43:42.262+00:00Comments on John Barrys Blog: Ireland: NAMA To Purchase Loans from the banks with bonds secured by the Irish taxpayersJohn Barryhttp://www.blogger.com/profile/02492900180819129920noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-6024955889759249523.post-59191569738769758072009-09-23T18:13:45.723+01:002009-09-23T18:13:45.723+01:00This comment has been removed by the author.John Barryhttps://www.blogger.com/profile/02492900180819129920noreply@blogger.comtag:blogger.com,1999:blog-6024955889759249523.post-53934860971626279952009-09-23T18:13:15.089+01:002009-09-23T18:13:15.089+01:00"NAMA will pay somewhat more to the banks for..."NAMA will pay somewhat more to the banks for the loans than their current market value, by endeavouring to estimate what the property underlying the loans will worth in five to seven years’ time, by which time it is anticipated that a recovery may have set in." <br />This appears to be crazy. There is no guarantee that property prices have reached the bottom at all. It is quite possible that the loans purchased by NAMA could end up being worth only 30-35 billion. If anything like this transpires the Irish taxpayer will be paupered for the next 10 years.<br />Essentially the Irish taxpayer is bailing out the banks-through NAMA- on the basis that we need a functioning banking system. There is no guarantee even if NAMA goes through that banks will lend in sufficient amounts to revive the Irish economy. The banks will consider no 1 and invest overseas if returns are better. The stockbrokers and bankers and builders are laughing at the taxpayers.<br />Essentially NAMA will be the worlds largest construction company. Many of the loans that will be taken over by NAMA will be on property and sites which are practically valueless. Some towns have sufficient rezoned lands to last for the next 40 years. Builders have bought these at astronomical prices. Now because of oversupply they are no more valuable than agricultural land. Ireland already has a massive glut of new houses.<br />Essentially we have the socializing the risks and the privatizing of the benefits.<br />NAMA can only succeed with a new property bubble. Who wants this?<br />Thanks for the links. I will look at these.John Barryhttps://www.blogger.com/profile/02492900180819129920noreply@blogger.comtag:blogger.com,1999:blog-6024955889759249523.post-48083410699553061402009-09-23T03:27:59.212+01:002009-09-23T03:27:59.212+01:00Okay, one more try here
Ireland's loan plan m...Okay, one more try here<br /><br /><a href="http://online.wsj.com/article/SB125311571323816197.html" rel="nofollow">Ireland's loan plan meets opposition</a><br /><br /><br />Hope that works because I feel like I am scribbling all over your nice blog, LOL!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6024955889759249523.post-84266075365581100612009-09-23T03:21:32.607+01:002009-09-23T03:21:32.607+01:00Oooooops! Sorry the first article link got a bit ...Oooooops! Sorry the first article link got a bit messy. The url is http://online.wsj.com/article/SB125311571323816197.html<br /><br />Hope that works better.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6024955889759249523.post-1419595541559745242009-09-23T03:17:20.449+01:002009-09-23T03:17:20.449+01:00John Barry, I was reading a couple of articles on ...John Barry, I was reading a couple of articles on The Automatic Earth blog the other day --> <br /><br /><a href="http://theautomaticearth.blogspot.com/2009/09/september-18-2009-rumble-in-number.html" rel="nofollow">Rumble in the Number Jungle</a><br /><br />Here are the article links:<br /><br /><a href="http://www.quackit.com/html/codes" rel="nofollow">Ireland's bad debt loan plan meets opposition</a><br /><br />and<br /><br /><a href="http://www.irishtimes.com/newspaper/breaking/2009/0917/breaking6.htm" rel="nofollow">Irish bank shares surge on government bail-outs</a><br /><br />I assume this the same NAMA plan and a similar strategy that the US has employed with TARP? (By that I mean socializing the risks and privatizing the benefits)<br /><br />How could that possibly benefit Ireland?<br /><br />I would love to hear more from your opinion!Anonymousnoreply@blogger.com