Paul Gogarty (Green) NAMA is a scam, but the good kind.

Green Party TD Paul Gogarty has said his take on NAMA and the market value overpayment of €8bn is that ‘it’s a scam’. He said he means this in a polite way because getting a 1.5% loan rather than borrowing €8bn at a 4.5% rate would cost the taxpayer a lot more in the long run.

rte.ie/news/2009/1022/banks.html

What’s all this “cost the taxpayer” shit you speak of pale face?

-Rd

So Paul, we’re being politely scamed. Well that’s great to know. I really hate to be scamed any other way.

You twisted fool.

I don’t entirely understand what Paul is saying but it sounds a lot like the old buying a car on the mortgage scam.

Car Loan 11%
Mortgage 4%

Buying house anyway so might as well borrow 20K for the car and another 5K for furniture
at 4% rather than 11%. Fine if you pay that 25K off over 5 years, but most didn’t.

He seems to be saying, we’ve got money from the ECB at 1.5% and from normal debt at
4.5%, so we’ve inflated the valuation to allow us to borrow 8bn more than we need.

This in itself would be crazy enough. But the 8bn isn’t going into the governments pocket
it’s going into the banks pockets.

The only explaination I can come up with is that Paul recognises that even if we take all
the assets from the banks, we still need to pump in billions more at some point, and so
it’s better to do it now under the 1.5% deal than try to find the money later.

This is all fine and dandy, but it doesn’t change the reality that if we’re overpaying for
the assets we should be gettign equity in the banks in return.

-Rd

what a gobdaw…