Congratulations to us Paddies once again. We don’t actually achieve anything real, but we talk a great game.
According to documents released to the Irish Times, Yehudi Lenihan’s notion of long-term economic value is “masterful”.
Masterful now. You got that? Masterful.
A concept designed to swindle the Irish taxpayer out of at least €20 billion is masterful.
Who says so? A character by the name of Steven Seelig, an adviser at the IMF.
It is both sufficiently specific and sufficiently vague to allow appropriate flexibility, says his email. I hope you can retain this language.
What does this mean in English? Well, you’re not a fool and I won’t insult you by stating the obvious. Clearly, two-faced crookery isn’t confined to Ireland.
NAMA — meaning you, the taxpayer — will buy the banks’ debts for at least €7 billion more than they’re worth. This is a nett transfer of at least €7 billion from you, the taxpayer, to the banks’ shareholders and bondholders. However, in reality, the cost to you and me is likely to be far more than €7 billion — more in the order of €20 billion. To make sure that the banks’ owners don’t suffer any inconvenience arising from their dishonesty and stupidity, Irish people with little or no income will be squeezed, in some cases into the grave.
The fiction supporting this move is called Long Term Economic Value. It means that in ten years time, the land and buildings on which the bad loans were made will have recovered their value to account for the difference in price being paid by the government. This assumption is based on no information whatever.
I’ll gladly pay you Tuesday for a hamburger today.
Now we have confirmation that the IMF are in agreement with this piece of nonsense.
Other NAMA stuff on Bock