Madam, – Seán Barrett (Opinion, September 2nd) is hopelessly confused and mistaken in his portrayal of the impact of Nama. He says “the builders will be relieved of their gambling debts on high property prices”. The facts are that the builders will be the first to lose their investments as property values drop, and they will be pursued under the guarantees that they provided for the loans they took out. The Minister for Finance has been unequivocal on this. Mr Barrett also says, “the bankers will be relieved of the costs of their incompetent lending”. Where has he been living for the past year?
The facts are that the costs of the current and prospective write-offs by the banks have resulted in the collapse of bank share prices and the elimination for the foreseeable future of dividends to shareholders. The banks’ shareholders have been and, under Nama will continue to be, the primary bearers of the costs of the whole debacle.
A more balanced assessment of Nama would add a great deal more to the debate than this misrepresentative rant. – Yours, etc,
Madam, – Could I congratulate Seán Barrett (Opinion, September 2nd) for pointing out the obvious, which has been missed by successive politicians, economists and media commentators since 2001: “Ireland would gain in competitiveness by having lower property costs.”
For many years now, I have been hearing how Ireland needed to regain competitiveness, while, at the same time, hearing nothing but praise for the rising property prices.
Your mortgage or rent is normally the largest expense from your wage packet. It follows that wages are tied to property prices and rents.
We need to understand that it is the banks, the politicians, and developers that are creators of this quango, not the Irish people.
While we cannot do anything about the guarantees our reckless Government has given so far, we can control the future.
I wonder whether that future does not lie with an open forum with Mr Barrett and other leaders in economics – starting with the ones Bertie Ahern told to commit suicide last year – to form a blueprint for dealing not only with banks and developers, but also with the future of lending and Irish property in general.
After all, we all need a home. – Yours, etc,
Madam, – It appears that we have managed the extraordinary feet of overturning accepted basic economic theory in this country. If we are to believe our Minister for Finance, banks and developers, price is no longer determined by supply and demand but instead by its mythical long term economic value. – Yours, etc,
Madam, – I’ve been a regular reader of The Irish Times during most of the boom years, but I can’t recall any of “the 46 economists” (Opinion, August 26th) warning of the perils ahead. Why should we take any notice of them now? We’d be better informed studying the tea leaves. - Yours, etc,
Madam, – I have heard politicians say so many times now that “Nama is not a bail-out for the banks and developers” that I am in absolutely no doubt but that it is a bail-out for the banks and developers. – Yours, etc,