Iceland: Thank Christ we are in the Euro

[theschmuck]

guardian.co.uk/world/2008/oc … editcrunch

Change one letter in the name of the country and the article could almost be applied verbatim to how Irish people have lived for the last five years. I don’t think we’ll get to this point thanks to our ‘European brothers’ (sorry about Lisbon lads) but it makes for cautionary reading regarding a worst possible scenario for a physically isolated North Atlantic country without a strong industrial base.

Iceland is on the brink of collapse. Inflation and interest rates are raging upwards. The krona, Iceland’s currency, is in freefall and is rated just above those of Zimbabwe and Turkmenistan. One of the country’s three independent banks has been nationalised, another is asking customers for money, and the discredited government and officials from the central bank have been huddled behind closed doors for three days with still no sign of a plan. International banks won’t send any more money and supplies of foreign currency are running out.

People talk about whether a new emergency unity government is needed and if the EU would fast-track the country to membership. On Friday the queues at the banks were huge, as people moved savings into the most secure accounts. Yesterday people were buying up supplies of olive oil and pasta after a supermarket spokesman announced on Friday night that they had no means of paying the foreign currency advances needed to import more foodstuffs.

[FordsonMajor]

Wow. That is truly frightening.

Doesnt one of these Icelandic Banks own an Irish bank? That might explain something in another post on here today.

thepropertypin.com/viewtopic.php?f=19&t=14134

Iceland was such a successful country with all sorts of clean energy technology etc. It is such a pity to see it in such a state. It is truly frightening to compare their currency to that of Zimbabwe. Truly frightening.

FM

[Cockerspaniel2]

Mmmm… would now be a good time to visit the place? Couldn’t afford it before.

[Green_Bear]

FYI - Icelands bubble was banking

Let them eat pickled ram’s testicles
by alda on October 4, 2008
icelandweatherreport.com/2008/10 … icles.html

o, our fearless leaders are presently working around the clock to try to save us from imminent disaster. Apparently there have been back-to-back meetings since early this morning between the government and all “vested-interest parties” who presumably are negotiating on behalf of us simple folk: union leaders, pension fund managers and suchlike.

It’s kind of bizarre to think that, if the blackest doomsday predictions come true, in just a few short weeks we could be back in the dark ages, eating pickled ram’s testicles and singed sheep’s heads, in between grazing on Iceland moss. Indeed, while shopping at Bónus yesterday [which was uncomfortably empty of wares - they’re the ones who keep saying we’ll have a food shortage, probably just a ploy to get us all to buy more, though * I found myself involuntarily thinking of what we might actually have left to eat if worse comes to worst. And, you know, it wouldn’t be half bad. We could probably subsist on harðfiskur [dried fish], smjör [butter], Nicelandic cheeses, skyr, hothouse veggies, lamb and fresh fish for as long as it would take us to figure out how to grow tropical fruits in our greenhouses in Hurdygurdy.** Plus at least we have lots of hot and cold water so we wouldn’t be thirsty or cold or smell bad.

[Persius]

@FordsonMajor

Wow. That is truly frightening.

Doesnt one of these Icelandic Banks own an Irish bank? That might explain something in another post on here today.

Don’t think so. One of the Stockbroker firms (Merion I think) is owned by an Icelandic company, and an Icelandic bank was in the running to buy Irish Nationwide a while back.

And the article is indeed scary. Iceland will be used to counter any arguements about how Ireland should withdraw from the Euro.

[Mrs_Mac_Pee]

Landesbanki owned something like 80% of Merrion.

[myagi1932-2005]

icelandweatherreport.com/2008/10/the-biggest-bank-robbery-in-icelandic-history.html

There’s some nice articles on that blog. I found the above piece very interesting.

Executive Summary: Their politicians are even more self serving than ours.

[Proximo]

@myagi1932-2005

icelandweatherreport.com/2008/10/the-biggest-bank-robbery-in-icelandic-history.html

There’s some nice articles on that blog. I found the above piece very interesting.

Executive Summary: Their politicians are even more self serving than ours.

Self-serving Politicos of a generally poor standard is NOT UNIQUE TO IRELAND. FFS !

I’d say we’re top 50 material. Enough for an invite to The Masters, but not contenders …

[whizzbang]

Iceland stock market just suspended trading on all financial stocks according to the BBC News

[spqr64]

@Proximo

@myagi1932-2005

icelandweatherreport.com/2008/10/the-biggest-bank-robbery-in-icelandic-history.html

There’s some nice articles on that blog. I found the above piece very interesting.

Executive Summary: Their politicians are even more self serving than ours.

Self-serving Politicos of a generally poor standard is NOT UNIQUE TO IRELAND. FFS !

I’d say we’re top 50 material. Enough for an invite to The Masters, but not contenders …

I disagree xman, I think we are easily top 10 material, think about it, the government has mushroom managed the people of this country for jesus knows how long and used every available excuse for their poor performance.
They have given away billions to developers etc through tax breaks and told us it was in the national interest to support the construction industry.
They have filled the public service, health service, civil service etc with managers to the detriment of front line staff ( managers and admin staff dont spend money on medicine).

But do you know what the killer is? People see this happening around them and still vote for these fu****s which leads me to believe they are a very clever shower and the electorate are as thick as planks not to mention political morons as they are getting and cant even see it.

[yoganmahew]

Iceland goes all Swedish:
cnbc.com/id/27052106

Iceland has agreed legislation that gives the government wide-ranging authority over its banks, including the option to merge them or force them to declare bankruptcy, the country’s prime minister said on Monday. Icelandic Prime Minister Geir Haarde said the bill, which parliament is due to adopt later on Monday, will also allow the government to take over housing loans held by the banks and put them in a government housing fund.

[daveirl]

@whizzbang

Iceland stock market just suspended trading on all financial stocks according to the BBC News

If banning short selling doesn’t work, ban all selling. Nice eh!

[Vulture]

Iceland is the canary in the coalmine. Keep your eye on it. If the ATMs stop working in Iceland, thats when Ill be buying bullion.

[Gatelodge]

**Financial crisis: Iceland’s ordered to start selling foreign-owned assets
**

Icelandic banks have been ordered to start selling foreign-owned assets to help the country avoid bankruptcy, a move that could lead to the fire sale of some of Britain’s best known names on the high street.
The order came from the Icelandic prime minister, Geir Haarde, who has spent the last three days locked in urgent talks to try to save the country’s economy from collapsing.

He addressed the country on national television and warned the economic situation had worsened.

**There is a very real danger, fellow citizens, that the Icelandic economy in the worst case could be sucked with the banks into the whirlpool and the result could be national bankruptcy,” Mr Haarde said.
**https://www.telegraph.co.uk/finance/financetopics/financialcrisis/3147015/Financial-crisis-Icelands-ordered-to-start-selling-foreign-owned-assets.html

This sucker is going down

[verbatim]

Wonder how much they’re looking for West Ham and Merrion Stockbrokers.

[Gatelodge]

**No responsible government takes risks with the future of its people, even when the banking system itself is at stake. The Icelandic nation and its future takes precedence over all other interests.
**Financial crisis: Full statement by Iceland's prime minister Geir Haarde

Clowen take note

[2Pack]

The banks have ‘assets’ ( loans) of 6x GDP ( or some vast multiple of GDP) AND denominated in Foreign Currency and its citizens have loans in these foreign currencies too.

No comparison guys , I am only amazed it took this long for a run to start on the Iceland Hedge Fund

[Open_Window]

@Gatelodge

**No responsible government takes risks with the future of its people, even when the banking system itself is at stake. The Icelandic nation and its future takes precedence over all other interests.
**

Financial crisis: Full statement by Iceland's prime minister Geir Haarde

Clowen take note

Brian Clowen & Brian Lendi-Hand what manner of beast do I see before me!

[Gatelodge]

Icelandic public television broadcasts were suspended this afternoon, as the nation waited for prime minister Geir Haarde to make an live announcement about the guarantee and his plans to shore up the country’s ailing financial system. Trading in the shares of Icelandic banks was suspended in Reykjavik because of concerns over the pricing of their shares, **as the krona plunged 30pc today. ** telegraph.co.uk/finance/news … escue.html

Why aren’t the Irish banks selling off their foreign assets to assist in the bale out at home or do they expect the Irish taxpayer to carry the whole can?

[Vulture]

@2Pack

I am only amazed it took this long for a run to start on the Iceland Hedge Fund

The run started some months ago, but the other Scandinavian central banks stepped in and backstopped them. I wonder how much they lost on that excecise.

It will be interesting to see if Iceland wants to enter a deeper economic pact with the EU after this episode.