[…] on more NAMA-related matters, here’s something from one of those very clever fellows who know how to do hard sums. Tags: nama, national asset management agency, windfall […]
adrem
,
I don’t disagree with a lot of that Ronan but where is the developer bail out? If you take NAMA as it is (as you have above) it is a bank bailout but only in so far as it stops the banks collapsing and therefore if you accept the importance of a banking system to the country it is actually a system bailout. Telling bank shareholders who have lost 95%+ of their money that they are being bailed out is cold comfort.
Anyway back to the point – accepting the point of NAMA being a bank bailout – they take over the properties and the debts and they then pursue the developers to the gates of hell for the money, taking ownership of the apartment blocks and estates as developers default, continuing after those developers personal assets etc etc – those properties that they take over, they rent out.
If, on the other hand, they simply flood the markets with properties and DON’T chase the developers for the amounts owed then absolutely a Very Bad Idea (capital V added !)
alan o'
,
Looking on from afar, and with just one question – does the value of the loans to be taken over by NAMA include rolled up interest? I recall reading that somewhere but now can’t find the source.
It seems to me that there is a grey area here. NAMA wants the money, the banks want the money, the property developers want the money. Nobody wants the property!
Making NAMA Work – Complete the Money Circle - Bock The Robber ,
[…] on more NAMA-related matters, here’s something from one of those very clever fellows who know how to do hard sums. Tags: nama, national asset management agency, windfall […]
adrem ,
I don’t disagree with a lot of that Ronan but where is the developer bail out? If you take NAMA as it is (as you have above) it is a bank bailout but only in so far as it stops the banks collapsing and therefore if you accept the importance of a banking system to the country it is actually a system bailout. Telling bank shareholders who have lost 95%+ of their money that they are being bailed out is cold comfort.
Anyway back to the point – accepting the point of NAMA being a bank bailout – they take over the properties and the debts and they then pursue the developers to the gates of hell for the money, taking ownership of the apartment blocks and estates as developers default, continuing after those developers personal assets etc etc – those properties that they take over, they rent out.
If, on the other hand, they simply flood the markets with properties and DON’T chase the developers for the amounts owed then absolutely a Very Bad Idea (capital V added !)
alan o' ,
Looking on from afar, and with just one question – does the value of the loans to be taken over by NAMA include rolled up interest? I recall reading that somewhere but now can’t find the source.
ste -statusIreland.c ,
It seems to me that there is a grey area here. NAMA wants the money, the banks want the money, the property developers want the money. Nobody wants the property!
Foolish Penny ,
Great article Ronan – all the spin about NAMA is making me ill!