Every forum has it’s day but this one is becoming obsessed with NAMA – look NAMA is the crappiest idea in the history of crap ideas but at the time when Anglo was going under and AIB / BOI were about to follow it most public economic commentators were talking up a bad bank. The international stock markets were waiting to see what the government would do. They choose NAMA and largely it’s been accepted – case in point bank shares are starting to recover BOI was it 13 cent today it’s above 2 euros.
NAMA is flawed but it has a chance of fixing the banks and yes it could cost us the tax payers dearly. If the government were to do a u turn now that would be seen as they will u turn anything especially the bank guarantee scheme, at which point were all f-cked.
Please, there used to be some very insightful posts here but they are been lost in a sea of noise about NAMA. Can we make tomorrow a NAMA free day and see what else is going on in the world?
Options 3 and 5 are essentially the same.
If we opt for temporary nationalisation we will need to cleanse the banks before refloating (NAMA by another name)
If we apply a realistic haircut to the book value of loans we will need to inject a large amount of equity into the banks, this nationalising them.
The patient is very sick and the illness has been developing for a long time.
NAMA is a rash and ill considered attempt at a surgical procedure. Note that the proposed surgical team largely caused the latter parts of the sickness, are currently aggravating it, and are indeed suffering aspects of it themselves.
Now, there may be someone out there with a better surgical procedure that will work better and maybe even reduce the severity and length of the convalesence period.
But, what is really needed is a much deeper understanding of the sickness and its causes, and a variety of approaches in the cure. We need a more holistic view of the sickness and its cure.
By all means attempt some surgery - the case is critical at this point, but let’s be careful not to kill the patient, or do something that turns out to be sadly irreversible.