How to defeat NAMA!

August 28, 2009

Stage One…………Fine Gael policy, allow the banks to renegotiate with bond holders, allow banks come up with a plan to manage their own debt
Stage Two………..Labour Policy, natioanalise banks that require nationalisation. Equity for debt support in any bank availing of investment loan support, to secure the tax payer’s interest.
Stage Three………Alliance of  Fine Gael, Labour, academia, IMF, EU to hammer out a mechanism with safeguards for the Irish Tax payer, to manage the debt. This could take place over a short period of 2 weeks, at an agreed venue.
As well as representatives from the IMF, bond holders, largely responsible for the failure of prudent lending to banks, should attend. An agreed across the board hair cut should be the final outcome of this summit.
A short, sharp shock, with a firesale of property/development over a short period of no more than 5 years with the eventual market value of the fire sale secured by way of claw back mechanisms, see EU guidelines, against any over the odds government bail out of the toxic debt, should be part of the solution.
We should return to good regulatory practice, a market place of reality, in as short a time frame as possible.

Hi,

There is some disagreement on the best alternative to NAMA e.g. http://www.namasayno.com/valuation.html

Unfortunately this is very helpful to FF who exploit this to its limit. While George Lee on ‘Morning Ireland’ RTE Radio One was able to demolish the claims made by FF of support from the IMF, see earlier posts, he was less sure footed in defending against Frank Fahy TD’s exploitation of a difference between Fine Gael and the Labour approach regarding NAMA. Frank Fahy TD falsely cited  EU support of NAMA, patently untrue, see previous post for details. However, a consensus and cohesive approach to secure the defeat of NAMA is urgently required.

Here are some ideas on how such a consensus could be created to secure a better safety net for tax payers in the face of the recklessness of NAMA:

Stage One………(this stage could be ongoing to begin right now, springing from an agreed consensus of a broad commitment to Stage Two and Stage Three) Alliance of  Fine Gael, Labour, academia, IMF, EU to hammer out a mechanism with safeguards for the Irish Tax payer, to manage the debt. This could take place over a short period of 2 weeks, at an agreed venue .

As well as representatives from the IMF, bond holders, largely responsible for the failure of prudent lending to banks, should attend. An agreed across the board hair cut should be the final outcome of this summit.

A short, sharp shock, with a firesale of property/development over a short period of no more than 5 years with the eventual market value of the fire sale secured by way of claw back mechanisms, see EU guidelines, against any over the odds government bail out of the toxic debt, should be part of the solution.

Stage Two…………Fine Gael policy, allow the banks to renegotiate with bond holders, instruct banks come up with a plan to manage their own debt, 2 week time frame!

Stage Three………..Labour Policy, natioanalise banks that require nationalisation. Equity for debt support in any bank availing of investment loan support, to secure the tax payer’s interest.

We should be wary of debt for equity unless we have some guarantee the target of this approach can be made good. We’ve already made this mistake with Anglo Irish, some comment on the risk involved here:

http://tauntermedia.com/2009/04/20/another-awful-idea/

We should return to good regulatory practice, a market place of reality, in as short a time frame as possible.

rgds

Colm

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One Response to “How to defeat NAMA!”

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