Given the softness in the data we have seen so far this year and some uncertainty about how much to attribute to temporary or statistical factors, I think there is value to watchful waiting while additional data help clarify the economy’s underlying momentum in the face of the headwinds from abroad.
Fortunately there is no evidence of such pressure occurring in respect of NAMA in the current Irish crisis, and indeed the legislation setting up NAMA has built in protections against such pressures. On the other hand, non-property related distress may (according to the international research) best be managed by the banks themselves.