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Banking Economy Favourites NAMA

Killiney Eviction

Wait a minute now.  Let me just process this Killiney eviction story that RTÉ is getting in such a lather about.

On the face of it, the facts are truly shocking.  Here’s a man of 71, and his 63-year-old wife being ejected from their home by bailiffs.  Out on the side of the street with nowhere to go, in such destitution that they have to set up a leaky tent outside their former home, the couple huddle together for warmth while their neighbours look on in outrage.  Meanwhile, the brutal thugs hired by the banks have control of the family home where all the old couple’s treasured possessions lie unprotected from curious, grubby fingers.

An appalling scenario, reminiscent of the worst excesses of nineteenth-century landlordism in Ireland, as the man himself, Brendan Kelly, so tellingly pointed out.  Innocent poor people thrown out on the side of the road.

Well, maybe not.

Earlier reports failed to mention, for instance, that Brendan Kelly is himself a landlord who owns many rental properties around Dublin.  They failed to mention that the bank secured a repossession order against the couple two years ago.   And they failed to mention that Kelly wouldn’t sell any of his properties to pay off the money he owed to Irish Nationwide.  Of course, when I speak of the money he owes to Irish Nationwide, I really mean the money he owes to us, the Irish people, who now own that bank.  And when that putrid bank, now part of IBRC, writes off a two-million-euro debt, that’s €2 million more that we — you and I — must pump into the bank to compensate for the loss.

Did I mention that the poor old codgers, who have no children, were living in a €3-million five-bedroomed mansion in one of the most exclusive areas of Dublin?    They needed a house with five bedrooms so that they could move to a new bedroom when they got bored sleeping in the last one.  This is a basic human right.

Another thing RTÉ overlooked in its zeal to protect those who share the DNA of its executives is this: the bailiffs were not working for IBRC.  They were working for the Sheriff who was executing an order issued by a court, and therefore all the talk by Brendan Kelly about phoning the bank was just so much tosh.  He knew the order had been issued.  He had two years’ advance notice, and yet, somehow, the couple found themselves out on the street without so much as a jacket to shelter them from the rain.  Two years’ notice, and yet he didn’t take the elementary precaution of moving his computer or his files, even though these form the basis for his business.

One other thing RTÉ didn’t press too much was Brendan Kelly’s arrangement with Fingers Fingleton.   You see, ten years ago, in 2002, Fingers was prepared to lend a 61-year-old guy €2 million towards the cost of a €3.75 million house.  That’s what I said.  €3.75 million.

Now, of course, it’s true that the money might have been lent to his wife, Asta, who was 53 at the time, and maybe the loan was over 17 years, bringing it up to 2019.  This is not yet clear.  What is clear is that the couple weren’t able to meet the repayments on their house  and it just so happens that those loan repayments were owed to a bank owned by you and me.  Since it’s been covered extensively in previous items on this site, we won’t go into the reasons why we own this bank.  But we do.

Oddly for an accountant, Brendan wasn’t quite able to recall when he first fell into arrears.  He thinks it might be about three years ago.   His memory also lets him down when asked about the date of the repossession order, but he thinks it might have been about two years ago.  And so, for two years, Brendan did precisely what you’d expect an accountant to do: nothing.  He didn’t even move his office out of the house.

Now, as I said, Brendan and Asta own a sizeable portfolio of property around the more salubrious parts of Dublin including apartments in Simmonscourt Castle and Ballintyre Hall.  This is not the lower end of the market.  Brendan and Asta are doing pretty well compared to most.  How many Ballsbridge apartments do you own?

Let’s get our heads clear now.  They knew the bailiffs were coming.  They’d known about it for two years.  There was a court order.  They didn’t have the money to settle the debt, and yet they stayed in their €3.75 million luxury mansion, instead of doing what the rest of the country  would have to do: get out.

It never occurred to them that maybe it would be a good idea to move into one of the many other properties they own all over Dublin.  Why?  Presumably because they might have to mix with the lower orders.  How could one possibly survive in an ordinary luxury apartment without even a gated community around one for comfort and security?  Ridiculous!

And so they clung on, buoyed up by the moral support of their neighbours in their own €3.75 million mansions who were utterly shocked and outraged at such inhuman treatment of an elderly millionaire.  Surely he should be allowed to live out his remaining years in the opulence he’d grown accustomed to.

Now, of course, if the story happened to be about Anto and Sharon from Killinarden, I’m not so sure it would have been front-page and prime-time news, but this action by the Sheriff was a strike at the very heart of South Dublin affluence, the place from which our national broadcaster derives its reason for existence.  The place that defined not only the attitudes and ethos of RTÉ but also provided its management and even defined the very accent in which the station speaks.

In the RTÉ world, Ireland is divided in two: Dublin and TheCountry.

Dublin does not include Tallaght, Ballyfermot, Neilstown or any of those appendages that exist solely to provide stock stereotypes for bad drama.  Dublin is anything south of Donnybrook, but excluding embarrassing local authority housing estates in the likes of Dun Laoghaire.

TheCountry is the rest of us muck-savages, or the majority of the population, as we like to describe ourselves.

Why is this story so big on the airwaves?  Simple: it’s the first time anything like this happened in Dublin, the only place that matters.  Meanwhile, in a development so laden with irony, the Occupy movement has moved in to support the Kellys, even though their transaction with Fingleton was the sort of thing that bankrupted Irish Nationwide in the first place.

A peculiar, and sympathetic, form of ageism permeates the reportage, with the couple described as “elderly”.  Brendan Kelly is a sprightly and razor-sharp 71, while his wife, Asta, is a woman of working age.  Neither of them are people in their dotage, and yet the implication seems to be that they were a bit confused when they got drawn into this mortgage, or else that they can’t understand what’s happening to them now.  Brendan wasn’t so confused that he couldn’t consult his computer to keep track of the various tenancies he makes money from.

The poor old devil isn’t that confused, God bless him, and neither is his incredibly ancient 63-year-old wife, who just happens to be a year older than Enda Kenny, the man who heads our government, and who is never described by anyone as elderly.  She’s five years younger than Vincent Browne — try calling him elderly and see what he tells you.

It’s time to call this story for what it is.  Bullshit.

Here’s a couple who owe a State-owned bank €2 million but want to hold onto their high-value mansion while at the same time renting out luxurious apartments all over Dublin, a couple who pull a ridiculous stunt by setting up a tent in the street instead of doing what the rest of us would have to do — move into a smaller place and get used to it.

So this childless couple can’t have the pleasure of occupying five bedrooms?  So what?  Get over it, and stop bombarding us with a non-story when real people are being evicted all over the country without a choice of alternative properties to live in.

I find it nauseating that this well-off man should insult the memory of those evicted in the hard times by comparing himself to the oppressed Irish of the nineteenth century.  No en-suite bathroom?  This is truly a First World Problem.

 

UPDATE

It turns out that the Kellys also own 13 apartments in London.

 

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More Bock the Robber posts on the economy

 

 

 

 

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NAMA

NAMA Wine Lake

This excellent blog is the best source of information on the NAMA shenanigans.

Have a good read through Nama Wine Lake.

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NAMA

The Nama Developers, the Dodgy Bankers and the Vatican’s Pauline Chapel

Now that we know for sure the economy is doomed thanks to the activity of fifty or sixty large developers and a half dozen private banks, I thought you might enjoy a reminder of what it means to really splash out.

You’ll recall Brian Lenihan loading us up with Catholic guilt when he admonished the nation that we all partied, and that we’d all now have to pick up the tab for the excesses of the high flyers.  You were probably wondering if that week in Ibiza could really have cost the country four billion euros.

Well, after the disastrous bank bailout of 2008, the entire nation re-evaluated its behaviour and began to keep a much tighter rein on the money.  No more vibrating armchairs.  No more holographic surround-sound systems.  No more solid-marble lampshades.

But while we were tightening our belts, what do you reckon the ignorati were up to?

This one might boil your blood a little.

The Vatican’s Pauline Chapel (Cappella Paolina) contains two frescoes painted by Michelangelo in the 1540s, depicting the conversion of Paul and the crucifixion of Peter.  They were restored at a cost of about €3 million which was raised by public donation rather than out of Vatican funds, and the chapel was unveiled by Pope Benedict in July 2009.

The final paragraph of the Vatican’s web page on the project reads as follows:

The financial support was provided by the Patrons of the Arts in the Vatican Museums and it is proper that their names are delivered to the memory and to the gratitude of the future generations: Mr. and Mrs. Michael Hintze, Mr. and Mrs. Jaime Davila, Mr. and Mrs. Bruce Halle, Mr. and Mrs. William Bollinger, Mr. Mark Keane, Mr. Patrick McKillen, Mr. Sean Mulryan, Mr. Derek Quinlan, Mr. John Ronan, Mr. John J. Brogan and Family, Mr. Sean Fitzpatrick, Mr. Denis O’Brien, Sir Thomas Farmer and Family, The Brown Foundation, The Florida Chapter, The Texas Chapter, Mr. Thomas Quick, Mr. and Mrs. John Foster, Mr. and Mrs. Timothy Rooney, Mr. Michael Fingleton, Mr. and Mrs. Howard Fromson , Mr. and Mrs. Bradley Collins, Mr. and Mrs. James Colross, Mr. Michael Boberschmidt, Mr. John McCaffrey, and Mrs. Shirley Kernan.

Isn’t that interesting?

Almost a year after we learned that Seanie Fitzpatrick and Fingers Fingleton had helped to destroy the Irish economy, here they are in the Vatican, hobnobbing with the Pope because they handed over money obtained at public expense.  And not only the two heads of the dodgiest banks in the history of civilisation, but also an assortment of property developers whose loans have been taken over by Nama.  Not to forget Mr Denis O Brien, the man a Tribunal judge said had obtained his mobile phone licence thanks to an inappropriate relationship with the government minister responsible for communications.

All of these guys rode the Celtic Tiger, and when they jumped off, they kept a little something for themselves.  Some of them, like O Brien, don’t even live in Ireland and therefore won’t have to carry the increased tax burden facing the rest of society.

Do you like it?  You have to love it really.  Otherwise, you might decide to run crazy with an axe, and while it might be satisfying, that would not be good.

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Banking NAMA

Developers McInerney and Treasury Holdings Default. Irish Taxpayers Pick Up The Bill

I’ve decided to define new units of currency: the IR$chool and the IRChildHospital.

One IR$chool equals roughly €2 million.

One IRChildHospital equals 500 IR$chool

So far, Anglo-Irish Bank has cost the State 12,250 IR$chool or 24.5 IRChildHospital.

Irish Nationwide has cost the State 2,000 IR$chool or 4 IRChildHospital.

The other two banks have so far cost the State 3,500 IR$chool, or 7 IRChildHospital.

Nama will cost at least 20,000 IR$chool, or 40 IRChildHospital.

Let’s add all that up.

So far the cost to the Irish taxpayer of bailing out the banks instead of letting them collapse is 37,750 schools or 75 National Children’s Hospitals.

It’s 90 LUAS systems.

It’s nine times the cost of all the motorways ever built in Ireland.

It’s 190 Aviva stadiums.

This is more than three times the entire amount of European structural funds given to Ireland in the last 30 years, all down the toilet because of the government’s desire to protect the banks and their investors at all costs.

Here’s a quote from that rabid Communist rag, the Financial Times, as given in The Irish Economy:

It is time to staunch the bleeding. As Irish state guarantees near their expiry date, some banks will not be able to refinance their balances. The government should prepare insolvent banks for forced debt-for-equity swaps, which would instantly recapitalise the banks in question and cap the government’s exposure. This cannot be done frivolously; European institutions are exposed and EU partners must be consulted. But someone must put an end to the practice of handing banks blank cheques. Some Irish pluckiness would benefit us all.

News reaches us today that McInerney Homes can’t pay its bills and neither can REO, the Treasury Holdings company set up as a vehicle for Johnny Ronan’s monstrous ego.  Johnny was the darling of the arse-licking classes in the high-flying years, as this grovelling piece from 2006 shows, but now, it seems the ordinary worker will be picking up the debris for him.  Send a pig-dealer’s son to a posh school, and every forelock-touching Paddy in the land will be turning the gobshite into royalty.

That’s Ireland for you.

Not to worry.  If these companies stiff the banks, there’s always the Irish taxpayer to make up the loss.  REO owes the banks about 1,000 schools in total, of which half is to Irish institutions, so there’s another billion coming out of your pocket, thanks very much.  McInerneys, on the other hand, owe Irish banks a piddling 50 schools.  One way or the other, the banks won’t lose, because the government will make up whatever shortfall arises due to the hubris and stupidity of Treasury Holdings and McInerneys.

Anyway, it’s only the price of another thousand or so schools.  Not even a full children’s hospital.

Peanuts.

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NAMA

Ghost Estates

The whole point of Nama is to transfer money to the banks.

Always keep that in mind.

Whatever they tell you about haircuts, remember that Nama will still be paying the banks more than their loans are worth, through a deft piece of doublethink known as Long-Term Economic Value.

This means that Nama doesn’t buy the assets from the banks at their current value, but at some price which they hope will emerge perhaps ten years from now.  It’s like buying an Ikea table and waiting for it to become an antique.

All well and good.  Who knows?  Perhaps some of the properties that these loans are secured against will recover part of their value, but where does that leave the so-called Ghost Estates?

These are the abandoned building sites in Roscommon, Leitrim and Sligo, where concrete mixers lie rusting, on their side, and roofless shells of houses slowly deteriorate in the rain.

There’s a conundrum for you.  The ghost estates are worth absolutely nothing today.  Not a cent, because nobody will buy a house in them.  They’re worthless, but that isn’t the worst part of it for Nama, which is spending your money to acquire the associated assets: namely, the bank loans.

You see, not only are these houses currently worthless, but their long-term value is even less than zero.  Why?  Because they are slowly crumbling and will eventually have to be knocked, which will cost a fortune in demolition, removal of the rubble and reinstatement of the land for agriculture. Many of them are timber-framed, a method of building which was uncommon in Ireland until a few years ago.  Any house built in this way, which has not been protected from the weather, is now uninhabitable, and cannot be repaired.  Many more have been soaked so long, with exposed cavities, that their timbers are saturated and their polyurethane insulation has been degraded by ultraviolet light.  These houses are fit only for the bulldozer.

It’s even worse than that.  Apart from the houses in the areas I mentioned, where the demographics ensure nobody will ever live in them, there are estates in our urban centres which are at a standstill for financial reasons, and many of these houses will also feel the kiss of the bulldozer, because they’ll have rotted away while the money gets sorted out.  Ironically, when these houses are knocked, identical new ones will be built on their foundations.

So, what exactly will Nama pay the banks for assets which are currently worthless , and which will gradually turn into a huge financial burden?  What sort of haircut do you think the banks should be expected to take?

Even if it didn’t pay a penny for these loans, Nama would still be doing the banks a huge favour if it took them over.

Why?  Because it would remove the long-term toxicity from the banks and place it on the shoulders of the taxpayer.

It’s one thing to buy assets which are worth less than they should be.  It’s another thing to buy assets which are worthless.

But what about acquiring assets which will become more and more toxic as the years pass?

Why should the taxpayer do such a thing?

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Limerick NAMA

€200 Million Property Developer Seeks Legal Aid

Limerick developer Mick Daly is telling the High Court he can’t afford representation and wants legal aid.  This gives him something in common with the scumbag drug dealers who daily laugh at our courts and our society, except that the drug dealers destroy lives, while property developers …

Ok.  Let me think about that.

Mick, you might recall, is one of the people behind the Riverpoint development in Limerick — a vanity project designed to massage the egos of the people who raised the funding for it.  Riverpoint replaced another vanity project, erected by a buffoon known as Chevalier Sheahan, a man who pretended to be an architect but who was, in reality, an utter fraud, well connected with the church.  Sheahan’s erection was designed by a cut-price Hungarian architect on the run from the Commies, and was exactly as you’d expect: a horrible Soviet panelak.

Mick, an accountant  somehow gained access to almost unlimited credit from the worst bank in the world, Anglo.

Like any Limerick gobshite unused to the high life, Mick was clearly flattered by Seánie Fitz, the high-flying spiv who extended such credit to him and he duly rolled over to have his belly tickled.

Happy days.  It was a long way from the Christian Brothers in Sexton Street for Mick.

Mick set up a company called Fordmount, and was joined by solicitors Dermot O’Donovan, Adrian Frawley, Michael Sherry and Tommy Dalton, who all became partners.  In a fit of hubris, the five lads decided they were Masters of the (Limerick) Universe, and eventually ran up a debt of about €200 million to the worst bank in the world.

Two hundred million euros.

Wouldn’t you love to have these lads advising you when you buy a house?

Two hundred million euros.

Some of the lawyer lads were in court recently and claimed they didn’t understand that their loan guarantees were legally binding.

A signature on a contract might not be binding, according to these razor-sharp legal ninjas.

As I said, wouldn’t you love to have these lads advising you?

The Riverpoint building itself is fine piece, if only its construction hadn’t overwhelmed  the small contractors who contributed their time, money and materials, thereby permanently ending their businesses and destroying lives.  But apart from that, it’s a fine building.

And they certainly did some fine work around the city, including the redevelopment of Bedford Row.  Their vision of the New Brutalism, dwarfing the human being beneath a massive money mountain was certainly in keeping with the tiger zeitgeist.  Come to think of it, the human being is still crushed by the tiger created by such inflated ego.  And the human being’s children, and grandchildren, as we pay the debts created by the worst bank in the world.  Fordmount’s bank.

I’ve always wondered about company names.  Where did they get the name Fordmount?  That’s just an idle thought in passing.

Irish solicitors have never been noted for lacking a hard neck, and DG O’Donovan are no exceptions.  It’s true that they don’t own flats occupied by drug-dealing junkies, like another prominent Limerick solicitor, but they did apply to become solicitors to Nama, despite being part of a scheme that embodies everything dysfunctional about Irish property development.  These people do not understand the concept of embarrassment.

Tommy Dalton has agreed that he owed €21 million or thereabouts, but the rest of the legal lads are still fighting the bill.  After all, it’s a lot of dosh.  Maybe they should ramp up the old legal aid work and start to rake in the cash like Ted and Johnny, our local free-legal-aid defenders.  Tommy won’t be long paying off the bank if he recruits enough knackers to represent, and it’s not as if he’d have to fight the cases.  From what I hear, Devane hasn’t fought more than a handful of cases in the last few years.  Mitigation is the name of the game.

Maybe the rest of the partners could learn something from Ted and Johnny.

Maybe Mick Daly and DGOD Partners could go to the High Court and claim to have a difficult childhood.  Maybe they could tell the court they had an addiction problem.

They could hire Devane, the People’s Lawyer.

Judge, I know they owe the debt, but perhaps the court could take into account their difficult past, and in particular their severe addiction to money.  They ran into a money-pusher called Fitzpatrick and he handed out the first fix free.


Categories
NAMA

NAMA Will Lose Hundreds of Millions

What’s that they said?  Nama was going to make a profit of, oh, three or four billion?

Wasn’t that what they told us?  We’d all be winners because Nama, somehow, by magic, was going to take all these shit loans and empty hotels and turn them into folding cash money, even though the banks and the developers were unable to do the same thing.

So, what are they telling us now?

Apparently Nama is going to lose several hundred million because — here’s a surprise — the banks didn’t tell the full truth about how bad the loans were.

Imagine.  The banks lied.  Are you shocked?

No.  Neither am I.

After all, didn’t the top bankers walk into Biffo’s office in the middle of the night in September 2008 and lie through their teeth?  And didn’t Biffo and Yehudi shit themselves and immediately extend a blanket guarantee to all the banks, plus the gamblers who took a punt on them?

There’s some consolation in all this though.  Ireland has produced a world-leader in Anglo.  It’s now officially the worst bank in the world, having lost more money than any other bank anywhere in the world.

Do you remember the way we used to make these little boasts about punching above our weight in the European Union?  Well, thanks to Anglo, we can now claim to be embezzling above our weight internationally.

Do you feel a little thump of pride in your chest?  For myself, I can tell you, there’s a manly tear brimming in my eye as I write this.  Ireland leading the world yet again.

As my friend and colleague, Mr Darwin, remarked in a timely email today:

So, if I understand correctly, this financial meltdown was caused by the banks selling bad debts to each other by fraudulent means. So the Irish government’s solution was to buy debts from the banks, who promptly lied to them and just sold them more bad debts. Priceless (literally).

That pretty much sums it up.

There’s nothing I can add.

Categories
NAMA

Nama Losses – Bankers Lied to Minister

NAMA is barely up and running, and already we have confirmation of what we suspected.  The situation is far, far worse than they told us.

NAMA’s chief executive has told an Oireachtas committee that of the €81 billion in loans to be taken over from the banks, developers are only paying interest on €27 billion.  Originally, we were told that 40% of the loans were performing and would help to cover the cost of the bad loans.  This assumption was made on the basis of information supplied to the Minister by the banks.

Brendan McDonagh informed the committee that in about €2 billion of the first €16 billion loans transferred, no payments at all had been paid.

He went on to say that NAMA would consider sending in the bulldozers to demolish some of the developments, and that NAMA would start to foreclose on bankrupt developers by September.

McDonagh described a mindless scramble to funnel lending into one sector at considerable pace and of a reckless abandonment of basic principles of credit risk and prudent lending.

This included failure to do very basic things like recording the right  names of people who had borrowed bilions from the banks, or recording details of the properties correctly.  It included issuing loans that were not secured against anything, and it included issuing multiple loans all secured against the same property.  It included issuing loans to buy agricultural land at commercial prices in the hope of securing rezoning.

He wasn’t sure, he told the committee, if all this was due to fraud or incompetence, but I think I can tell him the answer to that.  It was both.

The banks lied and lied and lied, to Lenihan and to the rest of us.  They’re still lying.  They were incompetent and they were dishonest.  They defrauded the country.

On the basis of these lies, Lenihan and Cowen panicked and put the guarantee scheme in place which ultimately forced the country to nationalise the filth that is Anglo.

On the basis of these lies, Lenihan persuaded himself that Nama could somehow magic away the losses that had been incurred through the criminal lending practices of the banks.  It was never going to work, and now we can see it unravelling.  The government was incompetent and was built on the deeply dishonest Fianna Fáil, which was in cahoots with the crooked bankers and the dodgy builders.

Theres simply no getting away from these losses.  Anyone with an eye in their head could see this was going to happen.

Fianna Fáil TD Michael McGrath, chairman of the meeting, at least provided a grim laugh when he observed that this would shock many people.

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Previously on Bock :  NAMA

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NAMA

NAMA Won’t Increase Bank Lending, Says IMF

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.

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More NAMA on Bock

Categories
NAMA

Well Done For Being So Slippery, Says IMF

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.

We’re doomed.

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Other NAMA stuff on Bock