If the government continue to press ahead with the current NAMA proposal, it will bankrupt the country. When are they going to realise this?
There was no need to rescue the crooked banks. They could have been allowed to fail, and the government could have set up a clean, unencumbered bank. It would have hurt the shareholders, and that’s a pity. I feel sorry for them, but now their shares are wiped out anyway, and they were, after all, gambling with their money.
This NAMA idea is quickly revealing itself as the most dimwitted in a long series of blunders by a government unable to think. NAMA will have to pay the banks more than their toxic assets are worth, and in the process, double or even triple the national debt. NAMA will suck money out of public services like healthcare, education, policing and firefighting so that a few billionaires can sleep easy in their beds, knowing that the Irish government will protect their interests.
Last week, Michael Somers, chief executive of the National Treasury Management Agency warned the Public Accounts Committee that the whole thing is heading for disaster. Remember, this is the man who’s expected to run the agency, and he thinks it’s a crock of shit. He expects legal battles every step of the way. He doesn’t know how the assets will be valued. He doesn’t even know how he’s going to set it up, he said, and neither do his staff, because they’ve never done anything like it before. They don’t have the expertise to do this.
Lenihan is still in denial, and refuses to listen to what his foremost expert is telling him: What Dr Somers was pointing to was that despite the enormous media speculation there is an awful lot of practical work to be done here.
Wrong. What Somers was pointing to is the fact that this plan will fail. No more than a hundred developers are responsible for the insane borrowing that has endangered our very survival as a nation. 100 traitors. And these hundred traitors will have a field day in the courts if NAMA tries to take over the assets for anything approaching their true present-day values. Because our legal system is so obssessed with the protection of property rights, these cynical, wealthy bloodsuckers will fight tooth and claw and will care not the slightest for the fact that their actions are destroying this country.
Why would they when they won’t have to live here? Why would they care about the Ireland they raped, as they relax by their swimming pools in some Portuguese golfing resort, using your money.
Why would the bankers and international investors care that nurses and firemen have suffered wage cuts to bail them out of the trouble they brought on themselves?
Who will suffer in all this? Not the bankers. Not the developers. The ones who will suffer are the ordinary workers.
If and when NAMA goes wrong, it will drag this country under, and we might never get our heads above water again. Don’t underestimate how dangerous the NAMA proposal is. It will finish us as an independent country unless the government gets sense now.
You could wake up any morning to discover that our new government is in Berlin, but on reflection, maybe that’s not such a bad thing. At least the Germans have principles and ethics. At least they know how to organise a country. At least they can do things instead of just talking about them.
Elsewhere, Brian Lucey asks the hard questions about NAMA .
Previously on Bock:
National Asset management Agency Takes on Bad Debts of Banks
The Language of Bullshit
Paying For The Celtic Tiger
Property Speculators and Treason
Irish Government’s Budget Deficit