tag:blogger.com,1999:blog-8817171247555815363.post1075847763528593483..comments2024-03-26T05:57:44.937+00:00Comments on True Economics: What's wrong with NAMATrueEconomicshttp://www.blogger.com/profile/07350536454228478974noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-8817171247555815363.post-83449073334083257852009-07-28T09:14:49.453+01:002009-07-28T09:14:49.453+01:00Hi Constantin,
I was at your excellent talk for t...Hi Constantin,<br /><br />I was at your excellent talk for the GP at the weekend. As you know the legislation is being finalised today and its pretty certain that the Government is not going to back down now. We all agree that something like NAMA is needed - it is just a matter of how it is done So, what would be your top 5 amendments to the legislation be. I know you have not seen the legislation but based on what has been widely reported what are your priorities? Tks. GavinGavinhttp://stopbungalowchaos.wordpress.comnoreply@blogger.comtag:blogger.com,1999:blog-8817171247555815363.post-12243137508419994122009-05-05T23:48:00.000+01:002009-05-05T23:48:00.000+01:00I actually can't understand how the government cou...I actually can't understand how the government could possibly disagree with nationalisation, when the cost has been so explicitly demonstrated to be less than the NAMA-only alternative.<br /><br />It seems to me like it can be summed up as: Under nationalisation, the government pours money through recapitalisation and remuneration (for troubled assets) into banks that it owns - thus increasing their value. Under NAMA-only, the government's actions increase the value of banks owned by private share-holders.<br /><br />It's funny that the government is the party most fearful of politicised banking, but somehow less surprising that they're least capable of seeing the solution - i.e. keeping political interests away from the banks. The new head of NAMA does little to alleviate fears.Jonathan Wysehttp://thefreemarketeers.wordpress.com/noreply@blogger.comtag:blogger.com,1999:blog-8817171247555815363.post-5993455940254816832009-05-05T03:41:00.000+01:002009-05-05T03:41:00.000+01:00Looks like it, Jonathan. Undercapitalized bank wil...Looks like it, Jonathan. Undercapitalized bank will reduce taxpayer liability in the short run, but will also lower share values in the long run, assuming the Government does not recapitalize the banks over time through operational means - e.g debt buybacks etc.<br /><br />Now, in terms of good deal for NAMA: under straight nationalization, the cost is the buy-out cost of the banks. Say, roughly at current share values - 2bn. Plus the cost of recapitaliziation - say another 5bn. So, say 7bn. Now, under NAMA, the cost is bond-financing of purchasing some 80bn worth of assets, plus recapitalization, minus the expected recovery on the loans purchased, plus smaller auxiliary stuff (legal battles etc). Cost of bonds alone will be more than double that 7bn above.TrueEconomicshttps://www.blogger.com/profile/07350536454228478974noreply@blogger.comtag:blogger.com,1999:blog-8817171247555815363.post-78953021027253188692009-05-04T22:52:00.000+01:002009-05-04T22:52:00.000+01:00If increased capital ratio requirements (Tier 1, e...If increased capital ratio requirements (Tier 1, etc.) wouldn't apply to a nationalised bank, does that actually imply that the actually initial outlay by the state would actually be less in the immediate future under nationalisation? i.e. the shares are worth less than the extra capital otherwise required. In order for this to be beneficial, doesn't it assume that (in order to be reprivatised a few years down the line) this extra capital would eventually come from private investors?<br /><br />Also, wouldn't any capital taken from the banks under a government-favourable NAMA deal be an entirely pyrrhic victory? The funding would still probably end up coming from the government in the form of recapitalisation. It doesn't seem to matter whether NAMA gets a good deal or not (within reason), because it costs the tax-payer in the long-run either way.Jonathan Wysehttp://thefreemarketeers.wordpress.com/noreply@blogger.comtag:blogger.com,1999:blog-8817171247555815363.post-81195186885978309762009-05-04T04:08:00.000+01:002009-05-04T04:08:00.000+01:00NAMA Gearing Up For Dockland's DDDA Scam?http://ga...<B>NAMA Gearing Up For Dockland's DDDA Scam?</B>http://galwaytent.blogspot.com/2009/04/nama-gearing-up-for-ddda-scheming.html<br /><br />In September 2008 the patriotic Galway Tent Cartel ordered Mr BIFFO not to liquidate Anglo-Irish Bank nor any of the rest of the Cartel.<br /><br />...<br /><br />NAMA's sponsors like to confuse taxpayers by using big opaque numbers such as the ninety billion euro they plan to scam the taxpayers for 'to save the economy'. That's €60,000 of extra taxes per worker (2011 full time headcount equivalent). Such money would be better invested on high value intellectual property.<br /><br />Its more useful to look at an example of just one site buried inside that €90 Billion zombie banking number. According to honest DDDA-Anglo-Irish-Bank the Glass Bottle hole-in-the-ground speculation has an alleged book value of €450 million. The site's real value is between zero and €45 million at most. However when the DDDA Autocracy hands out the planning permission for the future-slum to its co-conspirators, sorry co-investors, the Autocracy will declare the site's value is €299 million.<br /><br /><B>This means the honest NAMA gentlemen can diddle the taxpayers by paying 'a robust 66.6%' or 'only' €199 million for the site. The false book-keeping balance of €251 million is diddled from the taxpayers in the "systemic Anglo-Irish Bank" scam of September 2008.</B>http://2.bp.blogspot.com/_qdRqFPGZw2o/SfjTHDsfO5I/AAAAAAAABh8/DYoyD2wUSKg/s1600-h/DDDA_AngloIrish.pngThe Galway Tenthttps://www.blogger.com/profile/05785991600065262397noreply@blogger.comtag:blogger.com,1999:blog-8817171247555815363.post-72836145621084805922009-05-03T11:25:00.000+01:002009-05-03T11:25:00.000+01:00splendid understandable article for non-economists...splendid understandable article for non-economists.soldiersofdestinydotorghttps://www.blogger.com/profile/07332408476320857764noreply@blogger.com