The bank bailout is the Irish government, instead of going double or nothing on bank loans to property developers, going half or nothing.
They prevent the banks balance sheet from collapsing while at the same time taking on discounted bad loans that they think might make a profit.
Evidence:
http://www.irishtimes.com/newspaper/commercialproperty/2010/...
The houses haven't been built yet, and the guy has the loan out for them before he had permission for the plan, nevermind to build, and will now seek permission to build after the loan has been transferred to NAMA.
3400 homes at 2007 for sale prices is 3,400 x 300,000 = 1,020,000,000 euro.
This looks to me like they are building 3400 houses using government bailout money in the hope there will be some return on the initial investment. The property developer doesn't seem to be giving the original investment back.
I am no expert, so my impression may be incorrect and the cheerleading tone of the article really confuses me.
I do not think people who took out mortgages they could not afford are blameless in this, they helped to drive the ridiculous prices. Property snakes and ladders.
To get back on topic, I can't imagine where the Irish Government, banks included, can expect to safely store money enough to provide for the retired population.
The houses haven't been built yet, and the guy has the loan out for them before he had permission for the plan, nevermind to build, and will now seek permission to build after the loan has been transferred to NAMA.
3400 homes at 2007 for sale prices is 3,400 x 300,000 = 1,020,000,000 euro.
This looks to me like they are building 3400 houses using government bailout money in the hope there will be some return on the initial investment. The property developer doesn't seem to be giving the original investment back. I am no expert, so my impression may be incorrect and the cheerleading tone of the article really confuses me.
I do not think people who took out mortgages they could not afford are blameless in this, they helped to drive the ridiculous prices. Property snakes and ladders.
To get back on topic, I can't imagine where the Irish Government, banks included, can expect to safely store money enough to provide for the retired population.