Iceland: what ugly secrets are waiting to be exposed... … tdown.html

We should book in Miss Joly for our crowd when she is done with them…

one letter

well it’s actually 4…

These guys are only trotting after Anglo.

Really! It’s sad how small scale they were:

ehhh doh WAS that not what Anglo were doing with one of their Golden Circles in their battle with the short-sellars after the Paddy’s Day massacre? P.S. I say one of their Golden Circles as Im sure there were many Circles in Anglo. 8-

I was thinking about what Iceland has done and the mistakes it made. To my mind, the mistake was to nationalise the banks. They hadn’t guaranteed them, so, apart from the depositor insurance, the state had no obligation (leaving aside the obligation that comes from regulation). So, they could have rushed through a special liquidation regime designed to make depositors whole (to their insured amount) and let bondholders swing.

Could the same have been done with Anglo? Possibly. Although I have my suspicions that the size of the Anglo derivatives book reflects the fact that they were writing derivatives for the other Irish banks so, from that point of view, they were indeed systemic. Still, a rolling three month guarantee of interbank loans to the other banks would probably have sufficed to see out the panic.

YM I think you might be mixing up proper Buisness procedures which is very laudable, with the type of Gangsterism that went onn behind the scenes in Kaupt/landbanski/Anglo Irish Bank.Personalised ATM’s for the inner circles would be more accurate for these entities.Currency/Credit are too important for any Economy to be entrusted to Institutions without proper stocks and checks put in place.Ireland as it has emerged from present revelations is ROTTEN to the core.The big problem for Irish people at present is that they cannot trust FF to clean up the Banks as it has proven time and again that it is incapable of cleaning itself up.

I don’t disagree with you chaingang, except in one particular where Ireland is concerned. We do not issue currency. We print it as we are allowed.

Credit is a different matter, but if it’s credit that got us into this mess, can we reasonably expect credit to get us out? As I said in the signs of the recovery thread, the reduction in the rate of growth of consumer debt is the one hopeful sign I see. Unfortunately, the government will do their best to soak up any free capital this might release.

YM I dont disagree with you on these matters but would respectfully suggest that it was not necessarly credit as such that got us into the mess but the misplaced trust we put into Institutions which claimed systemic importance to the Irish Economy but were in fact more systemically important to the select minority.While I understand that We have no control over our Currency, the value of the Euro and its Credit rating is something that We have shared responsibility for along with our fellow Europeans.Irish lending Institutions have clearly ABUSED the Credit Weighting of the Euro since 2003 and squandered vast sums on GREED at the expense of the greater Euro community.Were lucky here in Ireland that these vast sums can be absorbed over time by Europe while the same abuses in Iceland cannot.I suppose to summarise what I think, it is this, Iceland’s meltdown was Economic Treason on a grand scale,while Irelands behaviour could be described as Regional Economic Treason.We have a great oppurtunity here in Ireland to avail of a stable currency and if we can formulate some strategy to deal with our greater exposure to the Anglo/US Buisness cycles and its associated compettiveness issues then I think We are totally different than Iceland and not just one letter and six months. To conclude I think we picked up a yellow card for this Property foul lets not risk a second yellow for someone elses GREED.

Interesting that the Telegraph is being taken seriously now… 8)

GREED (in big capital letters, no doubt) is fundamental to human nature. Whilst the socialists would wish to abolish capitalist greed (or GREED!!) and substitute their own version, it wouldn’t actually solve the ‘problem’ of GREED. When I hear the word GREED being proclaimed as A Bad Thing ™, I almost reach for my pistol (pace Goring), because I am greedy (or GREEDY!): I am greedy for art, for pleasure, for experience, for money and for getting the most out of life that I possibly can.

You would be better off, in my opinion, focusing upon issues of regulatory structure and particularly regulatory capture, rather than rants about GREED ™.

So would it fair to conclude that if you were in charge of a Banks in Iceland/Ireland ,you would have pursued the same lending policies of Seanie ,Sheehy,Goggin et al. given that their Personal GREED and the GREED of their cronies may have just been their fundamental and natural instincts leading them, in their pursuit of personal happiness and pleasure?? :angry:

To hell with it, you’re right. I don’t know why I go on these rants. I don’t even convince myself.


Conistency is the hobgoblin of small minds, or so I tell myself.

Thomas Sowell:

Iceland shows the dangers ahead for us all … ud-suspect