Whether you are for or against Nama it is clear that it is unclear whether it will succeed. A new report has found that the development market is paralysed due to it and there remains a large overhang of unsold properties:
I think this uncertainty is also spilling over into the retail market. We now are in a very bad position - and stuck there- Nama appears to be a lug weight which is depressing activity. This activity is needed to allow the correction to bottom out.Irish Times Nama issue 'paralysing' building
Uncertainty over how the National Assets Management Agency (Nama) will function and the time being taken to set it up has caused “effective paralysis in the industry,” according to a new report.
To my mind Nama has 2 critical areas of uncertainty:
1 ) Pricing: how are they going to price illiquid , toxic loans and associated security ?
2 ) Legal: the loan agreements are between the development companies & the banks, each agreement is unique and may preclude transfer to another agency.
Given the fact that it appears to be introducing more uncertainty - and paralysis - is it time to perform last rites on Nama and go for nationalisation ?