Everyone is talking about how good/bad NAMA is or will be.

What I’m interested in is who is going to fund it, but more importantly why???

Why would France and Germany stump up 90billion Euros?

Where is the contract and what will happen if we default?

The reason these questions are important is because the Irish Government has made the Irish people the collateral for the loan.

__________________

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

"Money is only important in a society when certain resources for survival must be rationed and the people accept money as an exchange medium for the scarce resources. Money is a social convention, an agreement if you will. It is neither a natural resource nor does it represent one. It is not necessary for survival unless we have been conditioned to accept it as such."

Well

A. to pass lisbon
B. because if we crash that is the end of the euro and fedral dreams
c. we are tiny, its easy to do and we will repay, we are like achill is to ireland.

If we call in the IMF, this has implications for the Euro.

The ECB don't want this. Hence the help.

People seem to get a bit confused about how NAMA will be financed.

Basically the government issues Irish bonds, gives the bonds to NAMA, NAMA swaps the bonds with the banks in exchange toxic loans.
The banks can then either sell the bonds at anyone who wants them or it can borrow money from the ECB with the bonds as security for the loans. The ECB accepts all government bonds European and non European for this purpose. So unless they changed the rules to prevent us doing this I don't see it as their choice.
Just the way the game is played.

Karl Whelan has a good piece on this very topic
The Irish Economy Blog Archive ECB, NAMA Bonds and the Irish Banks as Issuers of Sovereign Debt

Understatement of the Millennium.

From what I can see, most people think that that there are a couple of bigs vats of €50 notes in the basement of the department of finance, and that some lackey is down there 24/7 shovelling notes from the vats marked 'Reserved for the most Vulnerable in Society' into a line of AIB/BOI branded wheelbarrows.

__________________
Countries than produce fewer total CO2 emissions than Ireland:

Bangladesh (Pop. 162m)
Ethiopia (Pop. 80m)
Peru (Pop.30m)


To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

No basement these days goosebump.
We are just sending it to AIB/BOI shareholders and sub-bondholders by electronic transfer.

I think the ECB might have something to say if we issues 90billion in bonds to our banks without running it by them first, we are effectively printing money for our banks and telling the ECB we are good for it in the long term. We are doing nothing without the nod from frankfurt, nothing.

It isn't €90bn, its €55-60bn
We aren't printing money, literally or effectively (we're borrowing it)
We're not borrowing it from the ECB
NAMA has been approved by the ECB

__________________
Countries than produce fewer total CO2 emissions than Ireland:

Bangladesh (Pop. 162m)
Ethiopia (Pop. 80m)
Peru (Pop.30m)


To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

€55-€60bn would be a massive overpayment. I agree on the next 2 points but I think to say the ECB "approves" NAMA is a stretch.

They made mistake when allowed German and French investors invest through Irish banks into Irish property bubble, because money was not guaranteed.
NAMA will convert private debt of Irish banks into state debt and their money will secure
Irish taxpayers will pay them everything, because they grateful for period of over inflated property prices