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Thread: NAMA - Harney says it could break even....

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    Default NAMA - Harney says it could break even....

    A set of interersting discussions on the Irisheconomy.ie site relate to the discussion by Harney on The Week in Politics last sunday. She claimed that NAMA could break even. General consensus is not.
    See The Irish Economy Blog Archive More Bad Signs on NAMA and also see True Economics: NAMA Costs: in full detail

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    Thank you. Excellent articles. But very worrying. If Whelan and Lucey are right then we're getting a royal shafting, and so are future generations. The poster "Garry" summed it up nicely:

    Expecting NAMA to ever do anything other than lose billions is delusional or dishonest.

    NAMA is being forced to
    1) pay way over the odds for crap it doesn’t want
    2) deal with people and banks who have in many cases committed fraud, in the rest been less than honest
    3) borrow money in an environment where noone wants to lend
    4) sell property in an environment where nobody wants to buy…
    5) All with the invisible hand of the politicians lobbying on behalf of their favourite crooks and hard cases

    And it is seriously suggested they can make the thing break even?

    Pull the other one.
    My sentiments exactly.
    We all love animals. Why do we call some 'pets' and others 'dinner'?

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    Whatever Harney says must be true. The woman is a Saint. We are lucky she decided to join Politics and better tha Nation.

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    Quote Originally Posted by DCon View Post
    Whatever Harney says must be true. The woman is a Saint. We are lucky she decided to join Politics and better tha Nation.
    And the fact that TB and other contagiuos diseases are likely to sweep the nation again due to the dismantling of our health service will serve to reduce the population, and particulary those from the lower orders that might require some help to get by, thereby speeding up the recovery process. We were indeed blessed the day she was born!!!

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    Quote Originally Posted by BodyofEvidence View Post
    A set of interersting discussions on the Irisheconomy.ie site relate to the discussion by Harney on The Week in Politics last sunday. She claimed that NAMA could break even. General consensus is not.
    See The Irish Economy Blog Archive More Bad Signs on NAMA and also see True Economics: NAMA Costs: in full detail
    She's right. NAMA could break even.

    And the sun may not rise tomorrow either. But, guess what? It probably bloody will.

    Sounds to me like she's taken up writing horoscopes since in my universe the future is unknown. Lenihan said it worse though a few months back when he said something along the lines of the State was making an investment in the banks with a guaranteed return. There is no such thing as a guaranteed return, anyone who works in finance will tell you that.

    There is always risk, particularly at the level that these guys are supposed to be operating.
    If at first you don't succeed. Quit. Or you'll just look stupid.

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    NAMA to break even says Harney?

    How?

    Maybe if it started selling burgers and if they won the Harney burger supply contract.....

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    The biggest problem with all these posts is that the authors clearly don't understand what NAMA is, what its purpose is, and how it will function.


    Let me state it as concisely as possible: The Banks borrowed short term money to finance long term development projects. They assumed they would be able to roll-over the loans as and when necessary, and that the market would remain liquid.

    Today we are in a different paradigm; The market is no longer liquid. They can't roll over their loans, and the values of the "assets" in an illiquid market are hammering seven kinds of shyte out of their Balance Sheets.


    NAMA is a long term property development vehicle. It will borrow long term to fund long term.

    It will take the "assets" off the Banks' Balance Sheets, allowing them to straighten themselves out and get back into the business they were supposed to be in.


    All this hysteria about the "values" that the paper will be transferred at is ridiculous. It doesn't matter what amount NAMA "pays" because it is all a paper trail exercise to straighten out the Banks Balance Sheets. It is a backstop to prevent the Banking system collapsing due to the current global problems with liquidity.

    The only issue we should be discussing is whether the taxpayer has enough exposure to the upside.
    "Always do right. This will gratify some people and astonish the rest." Mark Twain

    “When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes. Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.” Napoléon Bonaparte

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    Quote Originally Posted by SPN View Post
    The biggest problem with all these posts is that the authors clearly don't understand what NAMA is, what its purpose is, and how it will function.


    Let me state it as concisely as possible: The Banks borrowed short term money to finance long term development projects. They assumed they would be able to roll-over the loans as and when necessary, and that the market would remain liquid.

    Today we are in a different paradigm; The market is no longer liquid. They can't roll over their loans, and the values of the "assets" in an illiquid market are hammering seven kinds of shyte out of their Balance Sheets.


    NAMA is a long term property development vehicle. It will borrow long term to fund long term.

    It will take the "assets" off the Banks' Balance Sheets, allowing them to straighten themselves out and get back into the business they were supposed to be in.


    All this hysteria about the "values" that the paper will be transferred at is ridiculous. It doesn't matter what amount NAMA "pays" because it is all a paper trail exercise to straighten out the Banks Balance Sheets. It is a backstop to prevent the Banking system collapsing due to the current global problems with liquidity.

    The only issue we should be discussing is whether the taxpayer has enough exposure to the upside.
    Good post

    What some posters overlook is the land bank that NAMA will gain and the possibilty in certain cases that it will add much more by being able to influence longer term residential and commercial development proposals across the countryside.

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    Quote Originally Posted by SPN View Post
    The biggest problem with all these posts is that the authors clearly don't understand what NAMA is,
    we know exactly what NAMA is, as do nunerous economists, other experts and the government. Get your facts straight, ignorance is no excuse.
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    http://libertyireland.wordpress.com

  10. #10

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    Quote Originally Posted by cd27 View Post
    we know exactly what NAMA is, as do nunerous economists, other experts and the government. Get your facts straight, ignorance is no excuse.
    Bwhahaha Numerous Economists never agree what day of the week it is so expecting to agree on NAMA is foolish.

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