I've been scratching my head all week thinking about NAMA. After several bottles of head and shoulders and a fairly intensive lice treatment I'm no closer to making any sense of it.
In simplistic terms. I buy a 1984 Ford Fiesta with alloy wheels, no engine and a rear spoiler for slightly more that its worth (lets say 35 million Euro). I of course don't have 35 million euro so i go straight to my bank manager. My learned friend in the bank recognising that 1984 Ford Fiesta's are selling like hot cakes lends me the money confident that 1984 Ford Fiesta's will be worth 50 million in a few months.
Of course reality sets in and when I try to drive my car I realise its useless. I try to off load it fast but the market if full of 1984 Ford's, 1985 Nissan Micra's and a glut of Honda Civic's with dodgy rear suspensions.
My banking friend who has loaned all this money is bricking it. At this point market forces should come into play. I should contact my local knacker who will come along and take my prize piece of junk and offer me "500 Euro boss, that's all she's worth".
My banking friend should be having a "Deliverance" style meeting with me and taking everything I own (including a rather soiled pair of underpants).
But as near as I can see that is not what is happening. The government is offering to buy the 1984 Ford at lets say 20 million. NAMA is hoping that the Ford will someday become a classic and might be worth, not 35 million but 50 or even a 100 million. This classic bit of market strategy is going turn our country around. The only thing missing here is Baldrick uttering those immortal words
“I have a cunning plan Mr Cowen”
Truly, am I missing something here?
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