Skip to main content

Nama Nation Of Speculators...

Nama turns us into a nation of speculators...


OPINION: Builders and developers have finally managed to shape the country in their own image...



THE DRAFT National Asset Management Agency (Nama) legislation runs to 136 pages, so it’s not too surprising that most people have missed the interesting section 201.

It reads as follows: 201.1: Henceforth, all male children shall be called Seán, Seánie, Paddy, Mick, Tom, Joe, Gerry, Liam or Bernard. All female children shall be christened Seona, Patricia, Michaela, Tomasina, Josephine, Geraldine, Wilma or Bernadine and shall be referred to de facto as Seán, Seánie, Paddy, Mick, Tom, Joe, Gerry, Liam or Bernard.

201.2: From the coming into force of this legislation, all citizens shall be required to receive a daily dosage of testosterone and cocaine to induce feelings of competitive aggression and megalomaniacal omnipotence.

201.3: All male citizens shall wear a pink shirt as a declaration that said citizen is so macho that he can wear pink and not be thought gay.

201.4: Modes of transport other than private jet or helicopter shall be prohibited by law. Usage of public transport shall be punishable by death.

201.5: All citizens shall be required to own at least one racehorse and attend at least five race meetings in every calendar year. During such attendance, citizens shall study the consistency of the nether parts of jockeys and attempt to develop necks of similar consistency.

201.6: All citizens shall be required to make regular donations to Fianna Fáil, just below the limit at which disclosure would be necessary. All citizens shall vote for Fianna Fáil, while retaining a sneaking regard for Charles J Haughey and a soft spot for Bertie Ahern. All citizens shall repeat at regular intervals that you can judge the health of the country by the number of cranes on the skyline.

201.7: All citizens shall extemporise pompous and reactionary views on dole scroungers, trade unions, pampered schoolchildren and other social parasites who, unlike themselves, are a “burden on the nation”.

Okay, so none of this is in the Bill, but it ought to be. For this is who we are now. Napoleon famously called the English a nation of shopkeepers. We are now to be a nation of property speculators. This is not a rhetorical exaggeration. The principal activity of this State, for this generation and probably the next, is to be the management of the biggest property company on the planet. Everything else – health, education, security, job creation – will be a side issue. We now live in Developerland – of which Ireland is a wholly-owned offshore subsidiary.

The State is taking on not just the debts of the property developers, but their habits of mind. We’re going for a grand, heady gesture: the €90 billion that’s at stake here is the same as the entire amount the Spanish government, in a vastly bigger economy, is spending on its entire bank bailout. And we’re channelling the developers’ adrenaline-fuelled love of risky behaviour.

Remember all that stuff about the wisdom of the market, which decided what things (and people) were worth and it was wrong, wrong, wrong to interfere? Scratch that. The market may think that virtually every property in what is to be the people’s portfolio is worth a fraction of what madmen paid for it at the height of the boom.

But we’re not going to buy the stuff at market rates, we’re going to buy it at some notional future value, determined by a raft of assumptions. These include the notion that the depression is a short period of readjustment and things will get better. We’re gambling on the future or, in other words, speculating.

We’re supposed to be reassured by the fact that these values will be set by independent auditors – like, presumably, the independent auditors whose assessment of the worth of Liam Carroll’s properties was said by Mr Justice Peter Kelly in the High Court to show “a degree of optimism [that] borders, if not actually trespasses, on the fanciful”.

This being the case, we have to start thinking like speculators. This takes a bit of getting used to. Take, for example, the office tower in the Rockbrook development in Sandyford, Dublin, that we heard about last week when ACCBank took our brother developer John Fleming to court. It is worth €10 million, but will cost €20 million to build.

Inspired, entrepreneurial thinking-outside-the-box go-getters like us see an opportunity.

Someday, when the tower is built and everything gets back to the crazed normality of the boom years, it will be worth €30 million. Now if you’re not seeing this then you’re not with the programme, you’re obviously not taking your cocaine.

Like Frankenstein, we’re doomed to spend the rest of our days chasing after the monster we created. We gave the developers and speculators the run of the country and they’ve managed to shape it in their own image.

We’re all on the same side now, whether we like it or not. All sucked in to a giant crapshoot in which we take our children’s future and roll the dice. Everything that makes for a civilised country is riding on the outcome of what must be proportionally the largest financial gamble any state has ever punted on.

But never mind, the helicopters will be nice.


Report by FINTAN O'TOOLE - Irish Times

Popular posts from this blog

Ireland's Celtic Tiger Excesses...

'Bang twins' may never get to run a business again... POST-boom Ireland is awash with cautionary tales of Celtic Tiger excesses, as a rattle around the carcasses of fallen property developers and entrepreneurs will show. Few can compete with the so-called Bang twins for youth, glamour and tasteful extravagance. Simon and Christian Stokes, the 35-year-old identical twins behind Bang Cafe and exclusive private members club, Residence, saw their entire business go bust with debts of €9m, €3m of which is owed to the tax man. The debt may be in the ha'penny place compared with the eye-watering billions owed by some of their former customers. But their fall has been arguably steeper and more damning than some of the country's richest tycoons. Last week, further humiliation was heaped on them with revelations that even as their businesses were going under, the twins spent €146,000 of company money in 18 months on designer shopping sprees, five star holidays and sumptu...

I fear a very different kind of property crash

While 80% of people over 40 own their own home just a third of adults under 40 do. This is disastrous for social solidarity and cohesion Changing this system of policymaking requires a government to act in a way that may be uncomfortable for some. Governments have a horizon of no more than five years, and the housing issue requires long-term planning. The Department of Public Expenditure and Reform was intended to tackle some of these problems. According to its website its remit is to “drive the delivery of better public services, living standards and infrastructure for the people of Ireland by enhancing governance, building capacity and delivering effectively”. So how is the challenge of delivering homes for people in 2024 and beyond going to be met? The extent of the problem is visible in the move by companies, including Ryanair, to buy properties to house staff. Ryanair has, justifiably, defended its right to do so. IPAV has long articulated its views on how to improve supply an...

Property Tycoon's Dolce Vita Ends...

Tycoon's dolce vita ends as art seized... THE Dublin city sheriff has seized an art collection and other valuables from the Ailesbury Road home of fallen property developer Bernard McNamara. The collection will be sold to help pay his debts. The sheriff, Brendan Walsh, is believed to have moved against the property developer within the past fortnight, calling to his salubrious Dublin 4 home acting on a court order to seize anything of value from his home to reimburse his creditors. The sheriff is believed to have taken paintings from the family home along with a small number of other items. The development marks a new low for Mr McNamara, once one of Ireland's richest men but who now owes €1.5bn . The property developer and former county councillor from Clare turned the building firm founded by his father Michael into one of the biggest in Ireland. He is the highest-profile former tycoon to date to be targeted by bailiffs, signalling just how far some of Ireland's billionai...