For example, in another post, I asked for evidence to support the belief that the creation of NAMA will increase credit supply to the wider economy but there was no responses at all. (I asked this prompted from what I've understood from reading that section of the World Bank study which suggests that the bad bank approach is not effective in this regard.) I would have thought that without strong evidence that such an approach delivers benefits to the wider economy, that debating micro aspects of NAMA would be pointless.
That said it may be all academic at this stage as the level of bad debts may mean there will ultimately be no difference in the end.
Kaplan, how do you explain the recent share gain in BofI and AIB?
So far as I can tell no one understands NAMA not even the Minister. ...
I'm against NAMA as no one has explained it in any meaningful way and it just seems to be another stitch up of the Irish taxpayer. Most people recognise something has to be done to sort out the banking crisis, but we don't trust those who are in charge.
Hi Bronte
I have tried to explain it in this thread.
What I cannot do, is predict what will happen with any accuracy.
NAMA is complex, as are the alternatives. But the fact that it is complex is not a good reason for opposing it.
Brendan
Any current share price movements are quite spurious compared to
1) The level of bad debts they will ultimately suffer
2) The price NAMA will pay
Why have the share prices increased if these banks are basically bankrupt? Why would one buy shares in such an entitly. What do the people/institutions buying shares know that we don't know about NAMA?
Yes I read that thread and it was great for someone like me because it tried to explain it simply but it's you that's explaining it and that is the problem. The minister should explain it.
Well they must think that these institutions are not bankrupt or at least won't be bankrupt after NAMA.
Also, just because someone is buying them doesn't mean they will make a profit. Could be like when you see someone putting €500 on a horse and thinking they must know something, more often than not they know no more than you and are just taking a punt
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