NAMA will use long term economic value approach

according to lenny in the dail today…i.e. they will overpay

market is frozen etc

sorry no link

It was never in doubt. And that is only the start of how they will attempt to prop up the property market of the entire country. As for their choice of language in “long term economic value”, there seems to be no limit to their cynical manipulation of language and associated lying spin.

If the long term economic value is appropriate, then why don’t they let the banks keep the loans on their books and allow them to mark them at long term economic value. No need for write downs.

i’m still waiting for the long term economic value of my 1989 tokyo real estate and my 1999 dotcom stocks.

overpriced shite is overpriced shite isn’t it brian.

rte.ie/business/2009/0526/nama.html

8-

What odds if personal guarantees can be used only once? Sure they can still sell the asset and split the money between creditors, are they f***ing stupid or wha? A junkie up to his uxters in the shit they use would see that. Another fcuking con job FF, ah well we’ll just have to go back and rectify it when they get chucked out of government.
Retrospective, its a great word as discovered by the UK financial regulator in the 80s and 90s and we too can discover its merits and value even if we have to change the law to do it!

By Dara Doyle
May 26 (Bloomberg) – Ireland’s National Asset Management Agency will take a “long-term economic valuation” approach to loans to be transferred from banks, Irish Finance Minister Brian Lenihan said at the Dublin parliament today. It is difficult to value loans at the moment because the property market is “frozen,” he added.

Girl #1: “That fella over there, you went on a date with him the other night, didn’t you?”

Girl #2: “Yes, but it didn’t last long. The cinema staff threw him out because he smelt so bad and injected heroin in the foyer. That was just before he hit me.”

#1: “Oh dear. Not much is going to come of that by the sounds of it.”

#2: “Actually, I think we’re going to enjoy a long and happy marriage. I look forward to raising our beautiful children and growing old together.”

#1: “Based on the observations so far, isn’t that a bit optimistic?”

#2: “I’m taking a long term relationship value approach. It’s all the rage with the smart girls.”

You wish Lenny… In the immortal words of Inda Kenny…

“Dream on baby…”

A “long term economic value approach” would be ok if its based on historical value metrics or ratios (long term)

In short, this amounts to an admission from Lenny that he will only sell the assets / loans / liabilities…

ALTOGEHER NOW!!!

“For what they’re worth…”

Holy jumping Jesus in a crapshack… :blush:

If they did do this they’d do something ridiculous like assume 5%+ economic growth for the next 10 years.

So where do the 50% falls come from in the context of a state underwriting exercise of overvalued shoeboxes?I just don’t see it.

It would be ok if they meant anything at all that would be appropriate to the phrase. Except we know that they’re thinking when they say it, “a few years down the road we’ll have the market pumped back up to where it was, lads.” What we’re dealing with is a cult of world-class idiots here.

NAMA is a rotten idea, that will not allow the property market to truly correct.

First off, NAMA is unlikely to push asset valuations to their logical positions (i.e. over correcting on the down side) as it will be unlikely to haggle hard with the State bailed out banks for the assets behind their non performing loans.

Secondly, as we are being led to believe, it will have a statutory mandate to maximise the States return on the capital used to buy these assets, it is unlikely to sell any at accurate distressed levels.

In an open market, with a rising level of delinquency the banks would be likely to sell their seized property assets at anything down to 20 cents in the Euro in order to get as much of the debts off their books. This is unlikely to happen with NAMA “queering” the market.

NAMA’s intervention, on behalf of the State, will act as an attempt to place an artificial floor on the price of properties that will not accurately reflect the distressed nature of the market and lack of willing buyers. The result could be that NAMA is it’s own worst enemy, prolonging the buyers drought with a new period of artificially inflated prices anchored around NAMA limits.

To twist a oft quoted maxim “The State can remain insolvent longer than you can remain rational”.

Blue Horseshoe

Effectively NAMA will be a parasite sucking the life out of the Irish economy for generations to come,draining investment and funds from the real economy to divert it to housing and hence preserve the mistakes of the past,taxing the spending power of the people to protect the banks and developers from the bankruptcy they richly deserved.

NAMA should be killled off before it is even born.It is a monstrous abuse of their power and position by politicians to preserve the rotten system they have built and profited from.A truly shameful episode in the country’s history.

Prof - completely agree. :open_mouth:

Even builders (not developers) will suffer as there’ll be no work til the ‘long term economic value’ magics itself up.

When I bang on about competitiveness, it covers an array of costs. Commercial rents being a significant component. Land is not scarce in Ireland. Low commercial rents would be a positive. Instead we’ll be tied to a body opposed to this :imp:

In the long term we’ll be worse off.

They are leaving a wound to Irish Economy that would smell for generations to come and no accountability/no shame.

Well put and it appears to be the plan of action. The IMF might have other ideas though.

I fear Nama’s approach will bugger the tax payer
ACC and other holders of personal guarantees will hoover up the personal assetts of the main players leaving NAMA and the tax payer less to recover.

The state should start forclosure on these numpties ASAP and start sequestering assetts pronto