Well, I just learned that a friend of a friend and his girlfriend just shelled out a princely sum for a four bed semi-d in south Dublin. Neither are in particularly stable jobs.I assume they would have consulted family and friends and received their blessing, and Im guessing in the case of family, financial support.People are still buying property.
This sounds like exactly what the NAMA guy from la sang jones was saying.
if this is the basis nama will be making it’s valuation then it’s the japanese route for us.
They are making future predictions based upon the shape of a graph of previous market behaviour rather than on an examination of the actual market or the level of overvaluation at the peak or any external conditions.
the foolhardy faith based belief that because markets have always recovered in the past they will do so within 7 years in the future is laughable when you look at the value of irish homes in comparison to european ones, our lack of control over interest rates, unemployment, the oversupply.
The scale of this bubble goes way beyond what we have seen in this country or anywhere else other than japan. Nama is in effect an attempt to do a semi japan and have a write down lite which will in effect have the same impact as the japanese scenario but leave Irish taxpayers on the hook.
We need to take as much of the writedown as possible as quickly as possible to allow capital start flowing back in and to restore competitiveness for new firms.
these guys just aren’t looking at the problem realistically they are still in denial
which will lead to a massive flow of money from the tax payer to the bankers bondholders and property developers
I think FEAR is now predominant, much of this is of the silent variety as it should be until desperation kicks in, the current FEAR is that the house of cards is now apparent and the shaky false foundation of NAMA may not hold for long. The transition from fear to desperation is sudden and very fluid, just look at Mexico’s tequila crisis, Argentina’s currency board at the same time, The Aisa crisis, etc… All went from fear to desperation in weeks and the way NAMA is developing it is very possible to be a quick IMO.