Bad Bank Bad Economy 11

March 23, 2015

Fresh from his return from the USA from which he failed to obtain any substantive deal to benefit  difficulties faced by the illegal Irish in the US, Kenny has taken the floor to stamp down on outspoken views of Greek agitators. He is hoping to secure a better deal for Greece.

Not as far as anyone can tell!

Instead of lending support to those working to secure debt write-down, he has taken on the role of the outspoken far right in Germany and in  EU. Embarrassed by personal failures to secure debt write-down he claimed was on the cards following June 2012 EU summit, he has taken to the role of court jester in terms of valedictory remarks re Irish bailout rather than Irish sell-out.

How else can you explain antics to denigrate  efforts of Greece whose success would help Ireland to vindicate promises of 2012.

Such paradoxes extend further and apply to our economy.

The term ‘Fragile Recovery’ has become a euphemism to claim the economy is not brain-dead and on life support! Lets look at some more of its paradoxes.

Though 80,000 emigrated last year, 30000 jobs allegedly were created.

Unfortunately lies, damn lies and statistics do not break employment statistics down on a job by job basis.

How many of those jobs were vacated by those who’ve had enough of austerity? Most jobs by far created in the Dublin area were ominously in the financial sector. Few jobs created outside Dublin.

A mini property boom in Dublin has generated some jobs alongside jobs in the tourism sector noted for zero contract and low paid if not seasonal work. How many so-called  ‘new jobs’ were vacated jobs left behind because of a rising brain drain luring Irish professionals to better paid and better prospects abroad.

Emigration is a boon to the authorities reducing the cost of welfare services. It has become an invisible contributor to the stabilisation of deficit spending by this government. No doubt it plays its part in claims we are growing at a rate of 4% such is its paradox.

Another such paradox or contradiction behind the claims of our fragile recovery is  return of a mini property boom in Dublin. bad-bank-structures catch-22 of claims the economy is returning and the paradoxical fact of property shortages leading to a boom in prices.

Let’s examine the paradox?

Sun Independent, 15 March, p12, Alison Bray: “There are other complex reasons for the plethora of derelict sites in the capital. Some are the subject of disputes over ownership, others have been put into receivership or liquidation or are under the control of the State’s ‘bad bank’, Nama.

You thought the bad bank Anglo had gone away? No, its detritus is hidden away in NAMA far from where the eye can see; but its ill effects are everywhere. Whereas Anglo fed the boom, NAMA is using its control vice mechanics to generate property shortages in Ireland.

This ensures ‘pillar banks’ banks feed upon large loans to fund exorbitant property prices; it allows redundant banks to claim and act on higher than normal asset prices. It even encourages banks to proceed with evictions to oust the 30000 whose mortgages are in deep arrears.

Banks hope to seize these properties and sell them on the NAMA controlled property market. By inducing a housing shortage in refusing to fund Irish property developers who are ready to begin construction as previously reported in this blog and elsewhere, NAMA is only interested in attracting vulture funds it solicits by creating the conditions for a high rental return for these funds.

Activities of NAMA shrouded in secrecy under FOI and by other means, should be investigated and exposed. Young people are being fleeced in post recessionary Ireland with a controlled fraud of high rental returns. Many will never afford entry into property ownership.

Here is a list of Nama properties available for sale on a county by county basis

“NAMA is obviously obliged to obtain the highest price possible for the properties it controls and may sell properties by public auction, public tender, private treaty or whatever the normal market practice is for the particular type of property they are selling.

To sum up, if a sales agent has not been appointed (and therefore not yet listed by NAMA), you should deal with the receiver (by email) and they will pass on your contact details to the sales agent. If a sales agent has been appointed, you can deal directly with them.”

Evidence that Nama is tampering with the market using its position to control residential property pricing is worth investigating but hampering such an investigation is the fact Nama is enveloped and cocooned in secrecy laws that would rival those of the CIA or KGB.

This is not new controversy, see

“On the 27th January last Fianna Fail Senator Mark Daly made a series of very serious allegations on Today with Pat Kenny against the National Assets Management Agency (NAMA).

The allegations are as follows:

That NAMA is breaking the law by failing to hold public auctions or competitive tendering for the sale of public assets within its remit.

That NAMA is allowing some properties to be sold back for virtually nothing to the original owners.

That NAMA is facilitating a scam of monumental proportions whereby friends of the original borrowers are putting in false bids for assets thus preventing Irish taxpayers from obtaining the maximum value from the assets.

That the scam is happening wholesale and without any transparency whatsoever.

That the scam, although widely known about within official circles, is being ignored by the authorities.

That within the next six months the best properties will be cherry picked by the ‘scavengers and vultures’ resulting in a very serious loss for Irish taxpayers.”

Lets look at NAMA. Is it the invisible hand of a false recovery for the Irish economy.

A post recession Irish economy should be spending on construction 12% of GDP, it is currently spending only 6%. Why is this incredible fact true?  Check out reasons above and feel free to comment below.

 Irish Water

Congratulations to the tens of thousands who marched last Saturday to protest against Irish Water missing the Scotland/Irish rugby match and making personal sacrifices to turn up.

They are not convinced by the paradoxical and ludicrous arguments of Minister Alan Kelly in favour of Irish Water and they are determined to rout FG/LB next election. Kelly makes the ludicrous argument of huge infrastructural development projects eg Shannon/Dublin scheme that Irish Water is required to invest in short to medium term.

According to Kelly only Irish Water can make such investments on behalf of the Irish people. Naturally the paper boys with armies of investment consultants and access to international vulture funds lie in wait to provide these lending services.

Marchers against Irish Water including those against Irish Water who’ve been bullied into signing up including the old and the infirm, are not willing to suspend their disbelief at the notion that the repayment of capital investment to pay for the super quango and any further investment, will arrive through increased charges in the future.

Marchers argue that such investment should come out of general taxation.

If Kelly was not such a mindless puppet of the troika or financial overloads who’ve fed him useless advice, he would get off his butt and head to Mario Draghi and the troika to demand a write-down of Ireland’s annual €8bn repayment to its bondholders to pay for the infrastructure of Irish Water. Why not argue for a European grant for a Hoover Dam project for Ireland to help get its economy moving?

Kelly knows about grants. This morning he announced a €250ml (I kid you not hospital trolley watchers) Rural Development programme. He wants the deserted villages to be a key part of the renewal programme. Grants to the rural community come in all shapes and guises. A recent radio programme on rural matters heard one contributor ask that a grant aid be provided to create a shared group of workers for farmers to utilise with training provided.

City dwellers instead get grants taken away through austerity for every disabled group and grants for groups helping to fight drug addiction are starved of funding. There is a rural/city divide. Yet grants for the capitalisation from Europe of Irish Water in spite of the outflow of €8bn a year to bondholders, are off the table for Kelly and Kenny. Another paradox.

Do not suspend your disbelief!

To break the link between the financial services people, the banks and politicians. In particular, the break the power of BAD bank NAMA to control and further ruin this economy,we need to build some good Chinese walls.

First up should be a law that prevents politicians taking up a post with a bank within 5 years of leaving office.

Before that we need to scrutinise the activities of NAMA.

Meanwhile its just been revealed that the amount of building land available for construction in Dublin has been vastly overstated. Perhaps ‘Fragile Recovery’ should be replaced with the term, ‘Controlled Scam’.


till again


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