Friday, 31 July 2009

BaNama Republic – NAMA bank bail-out

It will be interesting to hear how Brian Lenihan’s bank and builder bail-out, under the auspices of the newly formed National Assets Management Agency, will be received, as its costs and provisions become clear during the analysis of the weekend and beyond.

Lenihan has said on Morning Ireland that the tax-funded agency will not buy unsold, unfinished properties and plots of land from developers at prices that created the property bubble. Indeed he has said the toxic asssets/loans would not even be bought at "current market prices”.

Thing is, how do you arrive at a “current market price” for something that nobody actually currently wants to buy?

It’s quite likely – no, certain knowing Fianna Fail's relationship with the builders – that the taxpayer will pay too much for the unwanted assets, and they will be worth even less into the future.

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Harald75 said...

Love the headline, GM!

I think the "market price" will be sthg like asking price from the developer + 5% for every relative with a FF-Membership + 5% for the poor weather + 5% for every lost game under Trappatoni.
And that sum minus a discount of three percent that it doesn't look too bad ...

But it's always good to know what we all are working for, and that OUR tax money isn't wasted at all ;-)

Anonymous said...

hallo there MR Gm where can i sign up for this SCAMANAMA SCAMORAMA iam having to sell my bently and maybe the db9 if this blasted recession is not over soon, my friend paris thinks irelands two porky brians are totally sooooh not cool and wonders how they got their jobs in the first place bye from BH

The Gombeen Man said...

Thanks Harald... the headline was a rare moment of inspiration here at the Manor. On those increments: the first two are a given, and the last one could cost us dearly too, as I think Mr Trapp has been a bit lucky so far! Can it last?

Mr BH, I am sorry to hear of your hardships there in Beverly Hills. You know, Paris might well have a point. But really, I think we need David Bloch to say a few positive words and put the world economy to rights!

bigphathar said...

NAMA: A scheme thought up by the clueless to bail out the unscrupulous, all blindly paid for by the gormless.

Classic Ireland.

The Gombeen Man said...

Best summary I've heard so far, BP.

Anonymous said...

The value of an asset is what you get for it when you sell it. Therefore current market value is the best price that would be offered for the property if offered for sale right now. In most cases I would expect this to be approx 25% of current market value. A team of 'expert' auctioneers will be assembled to value the property. Never know there was such a thing as an expert auctioneer, I always thought they took the best price offered to them when selling a property, hardy a science.
None of the cabinet nor the senior civil servant who are pushing for Nama have been made declare their interests in the various banking institutions concerned. SdL