Feb 092010
 

Did you catch that bit of news during the week?

The bit where the IMF told the government that NAMA wouldn’t make the slightest difference to bank lending?  That it wouldn’t increase lending by a single red cent, despite what Yehudi Lenihan and Batt Huffnpuff O’Keeffe told us?

Not a penny, my friends.  Not a single penny will the banks hand out in extra liquidity to small businesses or to homeowners, once you’ve finished handing over your billions to support their bondholders.

Isn’t that nice?

Isn’t that a good, warm feeling?

Isn’t it uplifting to know that you’ve removed the element of chance from a billionaire’s high-risk investment?

I used to lie awake at night worrying about those international investors.

Yes, I used to tell myself.  It’s true that they get a high return on their money because they’re taking a risk the thing will go belly up.  That’s why they get such a good return, and why they’re such mega-billionaires.

Ah, logic, logic, logic.

Where’s my humanity?

These mega-billionaires are people the same as me.  They have children to worry about, and flatulence, and receding hairlines, and male-pattern hardness.

So what if they’re mega-billionaires?  They’re people with feelings, and it bothered me that they stood to lose on their gamble.

It really did.   You don’t like to see a guy losing, even if he bet on a dud horse.

And that was why I cheered when Yehudi announced NAMA.  I knew it wouldn’t bring lending back to the small man, but you know, the small man never expected much anyway.

The thing is, at least the international mega-billiionaires wouldn’t lose out on their bet, and that’s the main thing.  Yeah?

Come on.  It’s the least you can ask your great-grandchildren to give.

_____________

More NAMA on Bock

  11 Responses to “NAMA Won’t Increase Bank Lending, Says IMF”

Comments (11)
  1.  

    Happy to be of help.

  2.  

    ma NAMA na, do doo be do be …
    yeah, real sesame street stuff, muppets and clowns

  3.  

    We’re the muppets for putting up with this. I’m pondering extreme stuff for biffo & co.

  4.  

    Bob,

    “We’re the muppets for putting up with this.”

    Bob, I know. I used to be a muppet to.

    But I got over it.

    Don’t be angry about reality. See your spiritual advisor.

    Do you know any Priests that can ease your pain?

    I’m thinking of setting up a Charity (tax deductible, you can’t blame me for the, I don’t make the law, you did) to help people understand.

    Would you like to contribute?

  5.  

    rich banker
    ?

  6.  

    Ah Bock interesting article in the Sindo 3 developers who will benefit from NAMA as well as one of the Anglo 10 (remember them?) are also major donors to the Vatican. Link http://www.independent.ie/business/irish/top-developers-donated-huge-sums-to-vatican-2072679.html

    Hmmmm . . . . . . . I am open to correction but I thought Mammon was their god.

  7.  

    My heart sank last week when I heard that the European Commission had given further of their blessings for the NAMA lunacy. I’m a little more optimistic this morning, having read this:

    http://www.davidmcwilliams.ie/2010/02/28/it-took-europe-to-rein-in-nama

    How long now before the IMF is at the door?

  8.  

    The liabilities of the banks are so great that no scheme will be able to save them. All this disaster stems from the ludicrous guarantee extended by Lenihan and Cowen in September 2008.

    In my opinion, the signs point towards a default of Irish sovereign debt efore the end of this year. After that, noody knows what will happen.

  9.  

    Bock, I fully agree with you about a probable debt default by the end of the year. The national debt is spiralling toward 100 billion at a rate of about 1.5 billion per month. The bank losses could be up to 40 billion in addition to a deficit of about 20 billion. As the EU commission has thankfully made a decision not to allow Fianna Fail do a fudged bailout of the banks and their developer friends, the banks losses will emerge quickly. This will mean immediate de facto nationalization of the banks.
    The amount of funding required by the Govt will be about 20 billion in 2011 plus a probable 40 billion to bail out/ fund the banks. That could be up to 60 billion to be borrowed before the end of 2011. Not a chance. Nobody in their right mind would lend this Government €60 let alone €60 billion euro.
    The banks should be told to immediately dump all foreign assets. The idea that the banks have funded the purchase of substantial foreign assets with Irish citizens deposits while there are no funds left to help stimulate the economy is just ludicrous. Having dumped the foreign assets the stupid, stupid guarantee should be cancelled.
    These actions might, just might help avoid default. Just in case some people don’t know what default will bring, try this. For civil servants and all those in receipt of state payments, a cut of approx 30% if they are lucky. The follow on consequences of a shock like that on the rest of the economy would be horrendous.
    A catharsis brought to us by Fianna Fail, the cut hoors!

  10.  

    The latest insult the poor people of this country have to endure is that Anglo Irish is rewarding 78 staff members with pay rises to down-size the bank! Former Fine Gael finance minister Alan Dukes defends the increases by saying it’s necessary to reduce the level risk to taxpayers and the bank itself. What risk is that exactly??? The risk that the bank might actually turn a profit??? Needless to say fatty Cowen also backs the move.
    The insult perpetrated by Fianna Fail and their friends in high places continues. There’s a very cosy elite in this country that need to be removed and removed quickly.

Leave a Reply