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Irish 'bad Bank' Threatens Northern Ireland's Economy, Warns Mcguinness

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http://www.guardian.co.uk/business/2009/se...d-debt-warnings

Up to €5bn (£4.4bn) of debt could be at risk in Northern Ireland if the Irish Republic sets up its "bad bank" to deal with toxic loans, Northern Ireland's deputy first minister warned today.

Martin McGuinness said the establishment of the republic's National Asset Management Agency (NAMA) posed a danger to business across the border. "The big concern here in the north, and it is mainly in land banks, is that there could be a fire sale, which would effectively have a very damaging and distorting effect," he told the Stormont assembly.

McGuinness said €4.8bn was invested in Northern Ireland, mainly in land.

During the years of the "Celtic Tiger", when the Republic's economy was booming, new office blocks and flats sprang up. Irish developers began looking further afield for opportunities in an era of easy credit and spiralling property prices. By the mid-2000s, prices in Northern Ireland were also climbing to record levels, attracting many investors from the south.

The now-nationalised Anglo Irish Bank has an office in Belfast, which during the boom years lent at least £1.5bn to Northern Ireland-based developers. When the market collapsed last year it left many developers unable to make their repayments.

McGuinness said the €4.8bn of local assets left exposed had considerable implications, equivalent to a quarter of the output of the entire economy in Northern Ireland.

So he fails to consider the flipside of this that the purchase of these assets in the first place distorted the prices of these assets upwards in a damaging way??? No chance then that these assets could be overvalued?

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The hpc has reinforced for me the use of language that frame people's thought processes without them realising it.

Although there may be bubbles and busts (the bubble really only becoming apparent in the popular consciousness during the bust phase), there is no direct equivalent of 'fire-sale' for purchases; no 'fire purchase'.

How about 'land grab'?

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So he fails to consider the flipside of this that the purchase of these assets in the first place distorted the prices of these assets upwards in a damaging way??? No chance then that these assets could be overvalued?

Mafia boss sits on property assets. News? Yawn.

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The hpc has reinforced for me the use of language that frame people's thought processes without them realising it.

Although there may be bubbles and busts (the bubble really only becoming apparent in the popular consciousness during the bust phase), there is no direct equivalent of 'fire-sale' for purchases; no 'fire purchase'.

It is called panic buying.

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"I agree the language of this resumption of normality is very interesting."

"Luckily, now the ship is safely back in berth and prices have fallen to a more affordable level by 30-40%"

fixed

In Ireland what does it mean when a property is advertized : AMV 130,000 Euro , House for sale . For sale by public auction. (executors sale) unless previously sold.................. Is 130,000 the pice you can buy it for now? or is it the reserve price at auction? Nothing in Ireland is what it appears to be, as I have learned from experiance.

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I wonder if Mcguinness is warning the banks management that perhaps having a firesale is not in their best interests?

And I'm not saying this in terms of financial interest.

It's really ironic, considering his party came into existence as a result of a Civil Rights Campaign that focussed on his community's poor access to good, affordable housing - http://www.nicivilrights.org/?p=61

http://www.nicivilrights.org/?p=182

Edited by gruffydd

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Martin McGuinness said the establishment of the republic's National Asset Management Agency (NAMA) posed a danger to business across the border. "The big concern here in the north, and it is mainly in land banks, is that there could be a fire sale, which would effectively have a very damaging and distorting effect," he told the Stormont assembly.

I wonder how much NI's housing & land markets were "damaged and distorted" by a 30-year terrorist bombing campaign?

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It's really ironic, considering his party came into existence as a result of a Civil Rights Campaign that focussed on his community's poor access to good, affordable housing - http://www.nicivilrights.org/?p=61

http://www.nicivilrights.org/?p=182

I bet he's speaking without a hint of irony.

Martin McGuinness said the establishment of the republic's National Asset Management Agency (NAMA) posed a danger to business across the border. "The big concern here in the north, and it is mainly in land banks, is that there could be a fire sale, which would effectively have a very damaging and distorting effect," he told the Stormont assembly.

I wonder how much NI's housing & land markets were "damaged and distorted" by a 30-year terrorist bombing campaign?

Perhaps some journalist should ask the question and see what reaction it brings.

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