NAMA to finance itself with short term bonds?

Usually fairly well informed Dr G has this from , he claims, two sources

trueeconomics.blogspot.com/2009/ … ll_04.html

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This is absolutely crazy!!!

Even the boffins on the DoF can#t believe this is going to work. We will no longer be a country we will have morphed into a highly leveraged distressed property hedge fund.

Well…a wee gander here finance.gov.ie/documents/pub … view09.pdf might explain why they do…

that sounds odd. Doing a small %age short term may make sense to fit to an expected repayment of loans. Otherwise, somebody in europe is telling them what is acceptable. Maybe the generosity of the ecb knows bounds.

or maybe they havent a bogs notion what in hell they are doing? Each are observationally equivalent to the other.

Could this be why there was talk of 1.5% coupon?

This yoke, the

finance.gov.ie/viewdoc.asp?DocID=5880

Capacity Review ???

55 of them :open_mouth: . This is in addition to 700-800 at the Central Bank/Finreg and 150 over in the NTMA.

1000 Financial ‘Experts’ and the country bankrupt on their watch , what fucking capacity ?? :frowning:

Great. Much of the rest of the document is spent telling these extra chiefs to do their jobs properly . There is a call for :open_mouth: extra HR people :open_mouth: despite significant numbers of masters in industrial relations in the senior management .

Bet Lenihan does not read this shite report either and probaly won’t even finish the executive summary .

Could the reason for doing this be political? Have a huge amount of debt maturing before 2013, FF leave government before it starts to mature, and leave the opposition an almost impossible position of trying to roll over that debt. When the opposition run into problems rolling over the debt, then FF can say that that FG/Labour made things even worse. Is this being too paranoid?

Unfortunately that is also a possibility. Got me thinking of another: in order to make it look as though ‘good’ loans cover bond coupon, they borrow cheap short term debt. Though you’d need to be a champion idiot to do that.

It would make the posion chalice more posionious,but short of an immediate election it supports JMC 's notions on another thread.i.e. making the whole set up a irreversible for any future adminstration. 8-

I presume this is for the 10 bn of borrowings to ‘finish’ work. I am guessing that the assumption is that those properties that can be finished can be sold for a tidy profit into a newly stabilised market and return the ten billion with interest within the two years. Note, a tidy sum of this ten billion would find its way into the tax coffers which may be an attraction.

Complete and utter rubbish, but I guess that is the thinking behind it. Complete and utter rubbish why? Where are the buyers going to come from? Who would buy residential property in the amounts that are being talked about? And commercial? Although, thinking about it, commercial is easier to wrap and securitise… particularly if it comes with NAMA guaranteed income (your turn jmc…).

How dare you question the estimations stated by an unelected, Ex-Chairman of a Super Charged Property Devoloper, who gives his singular views direct to the Minster of Finance in a closed forum which is instantly turned into policy.

Get your head bowed low to the Dalai NAMA!

Mind you, you have to bow low, because he’s a tiny f**ker.

Love it :smiley: