If a an Irish
financial institution has say 10.000 mortgages on its books, it can
these mortgages into one
sell for say €2billion to an EU Pension Fund. The International
Buccaneers pocket huge commission, say 3% i.e. €60 million. All the mortgage companies, banks and building
were doing this. The bottom limit on the
amount of Retail Mortgages securitised is €60billion. This is being
at roughly €4billion a year. These were very attractive to bankers,
liquidity, competitive interest, able to achieve higher ratings from the rating agencies! etc.
The drawback for
Ireland of Securitisation is disastrous:
The money from securitisation mainly
comes from outside the
has a wide open economy. When people make money from these
deals e.g. builders, labourers, bankers, solicitors, accountants etc the first thing they
buy is a SUV, foreign holidays, helicopters etc with their
first purchase. Often products are manufactured in the
country that lends the
securitisation i.e. EU. The point is : the
money quickly goes out of circulation in Ireland.
We get one swipe at it for taxation;
estimated to have been €100,000 for each house. But the
tax take rapidly stops as imports and travel luxuries are bought.
The Securitisation money was pouring
into the country faster
could be built. This shoved up the
price of housing. But once this borrowing stopped, tax take fell,
collapsed by 50%.
Our well educated youth are now in
massive net equity. What bigger insult could we impose on our youth in
that reveres money and wealth?
The annual repayments on worthless
securitised loans are the
of a levy of €7,300 on every house in Ireland.
This mortgage repayment money immediately leaves the
Ironically, this would be what the
rates would be on a house of c. €350,000 if they
were applied at the
same amount as during the
rate money comes back into the
community; Securitisation for Irish assets does not.
The absence of rates shoved up the
value of houses. The International Financial
Buccaneers via Securitisation were able to apply larger than normal
mortgages, thereby queering
pitch on any attempt that the
government might take in applying rates for the
next 20 years.
government applies rates. Young people will not be able to pay the mortgages. The government will have to
further bail out the
€60billion of Securitisation deals is
what I counted. There is more, but time dictates my application to this
The negative Equity in connection with Commercial Securitisation has
calculated by me either; the madness in this area was also apparent
of town shopping areas etc
is killing local trade. I calculated the
following annual less spend per population in
each of the counties in the Euro North West Constituency to be:
The lure of
borrowing from abroad caused our property developers and bankers to go
we have to pay the bailout
underway by the
Management Agency (NAMA); you can at least double the above figures!