Posts Tagged ‘Nama’

Debt Forgiveness or Vulture Culture?

April 16, 2011
Debt Forgiveness or Vulture Culture?

Feeding the vultures?

Reading the Irish Examiner this morning I am struck and really upset by what I am seeing ..

On the cover is a picture of the large queues at the NAMA property auction in Dublin this week – while I am sure there are some genuine people in that queue looking for a break by getting a property they can afford and get their lives moving I am more than sure that their are plenty of “vultures” swooping to pick some meat off the dead carcases of our property collapse.

Consider the steps that lead us to this point:

Step 1 – Property owner (formerly known as bank customer) can’t afford mortgage: bank turfs the loans to NAMA at a huge discount and write off the balance (request money from government to cover the loss – p.s. we have to pay for this). End of problem for Mr Bank.

Step 2 – NAMA take on advisor’s, solicitors, experts of all sorts and deal with the “property owners” at huge cost (the problem is just in another box and we pay the fees). A good friend of mine, a solicitor tells me they all know the biggest game in town is getting a gig with NAMA!

Step 3 – NAMA creatively look for solutions to sort out the property market? Nah – lets just do a fire sale and get rid of the properties for half nothing. What brains came up with that solution?

Step 4 – Chase the original property owner for the deficit (at this stage it is probably much bigger than it ever needed to be in the first place), which they will never, ever be able to clear.

Step 5 – NAMA realise that it has a bigger hole than it thought in the first place – look for money from Government as they have a shortfall (that’s us folks!)

Step 6 – Vultures queue up, avoid buying any property until they come up for sale again in another bargain basement sale. Further devaluation of property prices as a result – yep you get a bigger hole with even more people in trouble..

I know there was a huge reaction this week to talk of Debt Forgiveness (why should we pick up the tab for other people’s carelessness? is the general attitude) but if you look at the scenario above, which we have all witnessed – the original property owner could have made a sensible arrangement with the bank, managed through the current economic climate and ultimately recovered more money than what was ever possible in an auction fire sale.

Possible Result – The deficit would have been a lot less, huge savings would have been made on unnecessary professional fees and the property market would not be further compromised.

Just a month ago a pub quite close to us was closed by the bank – the “owners” could not manage the level of debt as they bought too high. Now the pub is being touted around by the bank  at prices a fraction of what the original debt was – they will never recover the deficit from the original owners and we will end up picking up the tab for the “unnecessary deficit”.

Will the new operators do a better job that the original owners? And what about all the suppliers who get burnt in the shut down scenario?

Debt forgiveness is emotive and really difficult to manage (fire sale is too easy, less messy, inhumane and lousy for the economy = our country) but it must be better than pure stupidity, which we will all end up paying for. It’s time to work hard at brave, practical solutions that have the best interest of the county at heart..

….and besides, why do we need to feed the Vultures?

Greg Canty is a partner of Fuzion

“Sorry, there’s nothing I can do”

April 4, 2011
Time for change

"Ok - what can we do here to sort this out?"

Sorry there’s nothing I can do” – Revenue Official

Sorry there’s nothing I can do” – Bank Official

Sorry there’s nothing I can do” – NÀMA Official


Sorry there’s nothing I can do” – Mr Landlord

Sorry there’s nothing I can do” .. If we said that we would have no clients

We talk about flexibility, innovative solutions, making things happen, having a pro jobs agenda – some of us need to change our language.

What’s the problem? – Lets find a solution that’s best for everyone” – Mr Make It Happen

Greg Canty is a partner of Fuzion

The Problem with the hole

September 1, 2010
Brian Cowen

Brian Cowen - Can someone fill that hole please?

I am so angry this morning.

Yesterday I drove through Bandon in West Cork on the way to a client meeting and watched a long queue of men (one woman) outside a Post Office waiting to collect their dole money. Depressing sight.

I watched Alan Dukes of Anglo Irish Bank this morning on Ireland AM in mono tone explaining how the hole gets bigger because the “property” assets keep reducing in value: “we have to protect the depositors!” – who are they, please tell me?

I heard 47yr old Declan Murphy, 4th generation menswear store from Newcastlewest in Co.Limerick passionately talk on Newstalk this morning about how he is taking his wife and 3 kids to Australia because he can’t provide for them here. He is a proud Limerick man but can’t see himself coming back to Ireland.

He made a very simple point, which I believe in strongly ..

Unless we do positive things to generate employment and get things going in this country instead of pumping money into a bottomless pit we will never recover. A “win-win” he called it.

The hole will get bigger unless we treat the symptoms.

We need positive activity (People are more positive but outside of that I see absolutely none, not with banks or government) – that does not mean decisions to pump more money into NAMA and Anglo. It means generating employment, more income for people which will in time generate demand for some of those ghost properties – maybe the hole will get smaller?

Maybe it’s being very simplistic but it does seem very obvious – I wonder what our old friend Willie Sutton would say about it?

Best of luck in Australia Declan, come back and visit your folks sometime.

Greg Canty is a partner of Fuzion Communications

What would Darwin think of Nama?

February 9, 2010

Charles Darwin the English scientist who passed away in 1882 had a very famous quote “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change

What would he make of our property industry? In the muck for the best part of two years and no new initiatives, besides reducing prices and passing the buck from the developers to the banks to Nama. Is this the best that we can do?

Greg Canty is a partner of Fuzion Communications