Market for bank assets is illiquid?

[HanleyS]

Carroll decision will not affect bad bank, analysts believe - Irish, Business - Independent.ie

"It suggests that the discount compared with banks' carrying value will be 'significant'. However, the methodology 'will recognise that the current market for property-backed loans and the underlying assets are very illiquid' and will not require the banks to accept 'fire-sale' values. A spokesman for the Department of Finance has said that the Carroll decision will have no impact on NAMA and it will proceed as planned."

Market liquidity is essentially a measure of the level of understanding between buyers and sellers on the value of a commodity. The current illiquidity arises due to a lack of understanding between buyers and sellers of the value of loan commodities. There are ready buyers waiting but sellers will not agree to sell for what they are offering because they believe that their white knight NAMA is going to gallop in and pay them whatever they want for their rubbish. The illiquidity arises because of NAMA so this should not be an excuse for NAMA to buy the assets.

There are many many buyers out there for the assets of these failed businesses and those of their debtors. For instance any one of these companies could have an interest in acquiring Liam Carroll's Irish Sugar assets at the right price:
Irish food and beverage firms have €1.9bn to pick up impaired assets - Irish, Business - Independent.ie

I also know of at least one major Liam Carrol tenant with cash on hand to potentially buy their own premises at the right price. NAMA interference is impinging on the efficient operation of markets and needs to be abandoned.

[cactusflower]

Agreed. Having a large supply of cheap space will help restore competiticity. Anyone wanting to start a business up should be able to walk into affordable space, given the amount that's been built.

NAMA will prevent that.

[Jock_the_Waster]

lets get back to basics, here is a fundamental fact:

An asset's market value is the price it would fetch in the market, if it were sold immediately

Lets not use new words or phrases or allow others to spin deceit.

Now, are we as a people satisfied that the Government will continue its manipulation of the property market?