# PAMA - Personal Asset Management Agency



## LDFerguson (26 Feb 2011)

The following is an exerpt from an e-mail I received during the week.  Just putting it up here so that it can be discussed.   



> Hi,  We are getting in touch with you to highlight PAMA2011 which we launched last week. Our initiative is a concerted attempt to relieve the burden on some of the thousands of people affected by negative equity and mortgage debt. As you can see our two-pronged approach involves neither debt forgiveness or increased taxation etc.
> 
> PAMA will "Put People First"
> 
> ...


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## Chris (2 Mar 2011)

LDFerguson said:


> Offset some pension expectation on retirement in public sector against mortgage debt in 2011.



This would cost money now, as there is no pot of money set aside in an account or fund for individual public employees; public sector pensions are paid for out of current revenue. By bringing forward pension entitlements these funds will have to be found now, meaning increased borrowing and/or taxation.


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## Brendan Burgess (2 Mar 2011)

The Examiner reported yesterday that it is Fine Gael policy to allow people to access their pension funds to reduce their mortgage debt. I agree that this is worth looking at. 

Brendan


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## Brendan Burgess (2 Mar 2011)

From their website



> [FONT=Helvetica, Arial, sans-serif]*PAMA - Personal Asset Managment Agency*
> [/FONT]
> [FONT=Helvetica, Arial, sans-serif]
> [/FONT]
> ...



This just makes no sense to me. I don't even know where to start. 

The cost of borrowing for the Irish government is around 8%(?) at the moment. 

What does "reduce their borrowing" mean? Write down their mortgage? 

Someone has to pay - the borrower, the taxpayer or the lenders and the lenders are mostly owned by the taxpayer now.


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## Chris (2 Mar 2011)

I agree Brendan, first they say that their idea will not cost anything and then they go on to say they will borrow the money needed to pay for it. And those interest rates are more delusional than Bertie's "Lehman Brothers excuse".


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## Jim2007 (2 Mar 2011)

Brendan Burgess said:


> The Examiner reported yesterday that it is Fine Gael policy to allow people to access their pension funds to reduce their mortgage debt. I agree that this is worth looking at.
> 
> Brendan



Chances are that the ones who are in need of a financial boost are the ones that have little or nothing in the pension funds in the first place....

Jim.


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## Brendan Burgess (3 Mar 2011)

Jim2007 said:


> Chances are that the ones who are in need of a financial boost are the ones that have little or nothing in the pension funds in the first place....
> 
> Jim.




Hi Jim

The point is that this policy will help some people. That is good enough. There is no easy answer. There is no one answer. The problem needs a range of solutions. 

If someone is overindebted and they have a pension pot, the pension pot can be used to reduce the overindebtedness. It doesn't even have to be that large. A small fund won't solve the problem for an individual, but it will contribute to that solution.


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