Last night’s Leviathan debate was an interesting one – despite the egg-throwing – and it showed even more clearly that Nama is not fit for its purpose and that the politicans have no idea what they are doing. They are truly making it up as they go along.

Nama, according to its website, is an independent commerical entity designed to  take bad loans off the banks to make sure they start lending again.

Sweden’s Bo Lundren, who presided over their Nama-type body, said that in any crisis there are three things you must do:
1. Increase liquidity (lending to businesses and consumers)
2. Restore confidence (take quick, decisive action to show there is leadership)
3. Increase your capital base (get money back into the banks to make sure they are stable enough to continue)
See his comments here: http://www.iiea.com/events/bo-lundgren-on-the-rehabilitation-of-the-banking-system

Liquidity: So far, the government has done nothing to FORCE the banks to lend to SMEs again. These SMEs are stagnating: putting off hiring staff or downsizing and delaying development plans and innovation strategies.

Confidence: Um, we are talking about Irish politicians, right? I don’t think anyone – from international observers and domestic business people to Nobel-Prize winning economists and former regulators – truly believes that our so-called leaders will do anything to disrupt their gravy-train. Corruption, cronyism, conflict of interest, vested interests, jobs for the boys, winning money on the “horses” ring a bell here?

Capital base: Irish banks were reckless with their money and your money. They took the cash we put on deposit and loaned it ALL out. That’s right, no rainy day money. Coffers are empty. The normal practice is to keep 12% and loan out or invest 86%. Our bankers abandoned this and spent it all. Now they have to borrow it back – and this is getting more expensive every day.

So, Nama – it’s just a total nonsense.

This “commerical” and “off the balance sheet” entity is just one big smokescreen that’s hiding the size of our debt. Commerical entities funded by taxpayers’ funds – weird or what? Yes, there are semi-states but this is a commerical entity. No transparency – not subject to Freedom of Information legislation, not required to file an annual report. No accountability – who is running it, how much are they being paid, are they independent or just more people with vested interests?

Enron used to run an “off the balance sheet” entity. Those guys are in jail or dead from the stress.

Nama is just more jobs, and more money, for the same old people so they can keep the party going … but we’re footing the bill.

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