Ireland has established a National Assets Management Agency to take all the bad debts out of banks and manage them accordingly. Do you think this strategy will work?
by 
Doyler
ANSWERS: 1
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It certainly is a good idea. But i can see two side of the issue. The banks are holding a lot of toxic assets. They are practically insolvent and if the assets are left on the balance sheet, the banks might go under and the economy with them. That is on the good side. On the other sides government employees are poorly paid and those that can undertand how these complex derivatives works are rare end few in numbers. I do not think they would work cheaply for the government. Lastly i would like to say that a lot of these assets may well be worthless and the tax payer may have to pay the bill. Your question has only one answer . If it works banks win and tax payer do not pay anything. If it does not work the banks do not pay anything and the tax payers pay the bill. Either way the banks do not lose anything.
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