tag:blogger.com,1999:blog-8817171247555815363.post8945926234128203307..comments2024-03-26T05:57:44.937+00:00Comments on True Economics: Economics 04/08/2009: NAMA, Liam Carroll & Short Termist BondsTrueEconomicshttp://www.blogger.com/profile/07350536454228478974noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-8817171247555815363.post-13926769220621818262009-08-05T23:37:45.073+01:002009-08-05T23:37:45.073+01:00I have read the various commentaries on NAMA inclu...I have read the various commentaries on NAMA including the material on www.nama.ie. It appears that all economic commentators are against the proposition of NAMA and yet the Government will proceed for whatever reason. Their intention is to clean the balance sheet of the main banks of the toxic debt in order that the banks will start to advancew credit to the "real economy" which is the country's small and medium size businesses. From what I have heard from the banks in the media and from their address to the Dail Committee recently they say they are lending and open for business! <br />What can we do about NAMA? We will certainly not be given the opportunity to vote on it, at least in an election. It appears that we will not take to the streets in protest as would happen in many other democracies. Could we however have a silent revolution/ national strike? Could we allow the markets to regulate the crisisby allowing normal market forces deal with the banks and the toxic debt. This can be done by everyone private individuals and business defaulting on debt at the same time. If there was a designated "polling day" say Sept 1st where we are all asked to "vote". To vote against NAMA we all default on personal debt ( overdrafts, credit card,mortgages, finance agreements etc) and business do likewise in respect of business debt. This could be coupled with a withdrawal of deposits from the main banks (notwithstanding that the deposits are covered by the Govt Guarantee) but deposited in another bank covered by the Guarantee. If this threat did not reverse the thinking on NAMA then the implementation of the threat could cause the collapse of the already fragile main banks and remove the need for NAMA.<br />Then perhaps the Government could create a good bank and use the capital to get the real economy moving again.<br />As far as I am concerned the banks will not start lending to business post NAMA as by then most business in this economy, having been strangled for the past 12 months will simply not present as viable prospects and will be refused loans by the banks applying lending criteria that they should have applied for the last 10 years but did not. To rely upon the banks to advance capital to business again the banks would have to take the same risk with business as NAMA ia prepared to take with their impaired loans, and the banks are not capeable of doing so.<br />If they dont the strangulation of small and meduium sized business will continue and gradually many will fail.Anonymoushttps://www.blogger.com/profile/03408930229417771764noreply@blogger.comtag:blogger.com,1999:blog-8817171247555815363.post-8183379563428667272009-08-05T12:17:03.360+01:002009-08-05T12:17:03.360+01:00No gentlemen, I am not making it up... And that &#...No gentlemen, I am not making it up... And that 'something else' has been already disclosed to us all: Messr Cowen & Lenihan, like the main character in the excellent film Downfall, have arrived at three insights:<br />1) The US economy is about to turn the corner and the Yanks will rescue us;<br />2) Emigration of some 150,000 from the country will relieve pressures on dole payments; and<br />3) Knowledge Economy is happening.<br /><br />Except, in the case of Downfall, the main character was, of course, has been moving his imaginary divisions against the advancing Soviets. Messr Cowen and Lenihan have gone past that point - they have by now assumed the enemy no longer exists. 'Poooof, and the Devil is gone'...<br /><br />And I am not making this up either - these are consistent policy guidelines that the Government has established on numerous occasions, and I wrote about the state of denial that exists in our corridors of power on my Long Term Economics blog: http://trueeconomicslr.blogspot.com/2009/06/department-of-finance-fairy-tales-june.html.TrueEconomicshttps://www.blogger.com/profile/07350536454228478974noreply@blogger.comtag:blogger.com,1999:blog-8817171247555815363.post-45696686826308989352009-08-05T12:10:29.855+01:002009-08-05T12:10:29.855+01:00He's not making it up.
This whole NAMA exer...He's not making it up. <br /><br />This whole NAMA exercise is about one thing only - buying time. Pretending to be doing something while something else gets underway. The thing is...what is the something else? <br /><br />Anyone any ideas for my idle conspiratorial mind :)Philipnoreply@blogger.comtag:blogger.com,1999:blog-8817171247555815363.post-71881675630495717342009-08-05T00:32:47.984+01:002009-08-05T00:32:47.984+01:00Could explain this story in the times
http://www....Could explain this story in the times<br /><br />http://www.timesonline.co.uk/tol/news/world/ireland/article6736255.ece<br /><br />Sources close to the government said Nama will pay an annual interest rate of just 1.5% on the bonds it will issue to the banks as payment for their property portfolios.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8817171247555815363.post-74095074188917298542009-08-04T22:12:44.395+01:002009-08-04T22:12:44.395+01:00tell me your making this up....tell me your making this up....Anonymousnoreply@blogger.com