Nama's free-market interference benefits only its bal. sheet

BoyRacer · September 11, 2011, 8:04pm

Nama’s free-market interference benefits only its balance sheet - James Fitzsimons → independent.ie/opinion/analy … 73029.html

It’s time for new leadership at Nama as it is interfering with the free market mechanism to make its own balance sheet look good.

Brendan McDonagh, the CEO of Nama, claims that commercial property prices might fall by 20 per cent if the plan to abolish upward-only rent reviews was fully implemented. Yes, Brendan – did you ever consider that maybe that is what we need to get business moving again?

Speculation and reckless lending by the banks created the property bubble. And prices may have to fall even further before they can recover. When they hit the correct floor price, businesses might be able to buy the premises they need at affordable prices. Then the banks might even be willing to lend, and without unacceptable risk.

Meanwhile, eliminate upward-only rent reviews, and allow market forces to find the right price. Monitor and control the abuse by all means. While meddlesome interference by you and your team might justify your bonus, it is doing nothing to help this economy. If you couldn’t see the correction that was needed, you are not fit to do the job and it’s time to move aside.

there is more

Larry · September 11, 2011, 10:16pm

At last, a piece it’s possible not to be cynical about. Well done to James Fitzsimons.

What is disturbing is how few people seem to be even *thinking *along these lines, never mind actually moving things in this direction.

Open_Window · September 11, 2011, 11:41pm

I call Bullshit to a change of management. Whatever you do do not legitimize the beast that is the secret dominion know as NAMAland by appointing a new governor ffs.

There was no FREE market before NAMA, facto one.

Facto two, NAMA was created to make sure there would never be a FREE market with imminent collapse of the Openly FIXED market which needed to be protect or at least protect the players form its inevitable implosion. Terms such free market are used to distract you from the other hand as your loss becomes some one else gain.

NAMA should not exist End of Story. It’s very existence usurps the sovereignty of the people who sail in this ship of state.