Its more a bit of both. If NAMA pays close to a market rate for loans, then NAMA as an entity needs only to collect whatever it paid for the loan. So if a loan was €100, and NAMA pay €40 then if NAMA get €41 out of the developer they can say 'profit'. But the developer can equally relax, safe in the knowledge that his personal guarantee has now effectively been turned into a non-recourse loan - giving him a gift of €59 in the example above.
Bondholders happy, as (independently of NAMA) the taxpayer recapitalises the banks that owe them money. Developers happy as their loans are transferred to an entity (NAMA) that has no particular incentive to pursue full repayment.
However, banks know they have a duty of care to their clients and I'm sure that this should prevent them lending irresponsibly.
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How did this happen? It costs about twenty euros to get to ireland from London.
"POLITICS, n. A strife of interests masquerading as a contest of principles. The conduct of public affairs for private advantage."-Ambrose Bierce
Headline: "Irish Community Centre in London Invents Problem in Fit of Eighties Nostalgia".
I'm starting to have a bit more respect for the present young generation. Its obvious that when this crowd found Irish teenagers living rough in the eighties, the youngsters just compliantly took the offer of a fare home and a life on the dole in Strokestown. What can I say, the anthem for our generation was Judge from Wanderley Wagon singing the Safe Cross Code.
However, banks know they have a duty of care to their clients and I'm sure that this should prevent them lending irresponsibly.
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"Remember, one look for a safe place,
two dont hurry, stop and wait,
three look all around you..."
It's up there with "Pretty in Pink" as my favourite pop song of the decade.
Anyway, I'm sure these Limerick lads just spent their taxi fare on Jager-bombs and decided to kip where they were. If you were forced to beg in London, you would make enough money to get back to Limerick (with an extra bag) in about twentyfive minutes.
"POLITICS, n. A strife of interests masquerading as a contest of principles. The conduct of public affairs for private advantage."-Ambrose Bierce
I doubt that there will be any large emigration to England and the States as there was
in the 1970's and 1980's.One reason is the that the traditional safety valves of these
countries are not what they were today compared to 20-25-30 yrs ago.The pickings are
a lot slimmer now than they were then.
Another reason is the dole.The dole here is 196 euro a week,in England it's
only around 68-70 euro a week.A big difference.Even in the 1980's the streets of London were not paved with gold and I imagine the streets of
London today are not paved with gold.
The situation here in Ireland today is not very good at the moment and yes we do need a change of govt,but it's still a lot better than it was the 80's.
The area of Kilburn in NW London was Irish for many yrs and it was known as the 33rd county of Ireland,but in the last 20 yrs it has changed and it's now
predominately a Black Afro-Caribbean area like Brixton and Notting Hill.