Financial crisis: Iceland's dreams go up in smoke

reply to post by adrenochrome
bbc news they where interviewing someone who blamed the whole thing on 20 - 30 people.. it looks really bad ..

reply to post by Lucid Lunacy


I was thinking the same thing ..its all too set up isnt it ..the infamous Problem Reaction Solution scenerio ....


Good post Adreno thanks for keeping us all informed ...

reply to post by Benarius

I can tell you that I lived in Iceland in 1970-71 and again two years later. Everyone can get a better perspective of the country if they think of them as the next town over, and not a sovereign nation. They only have a population of 300k. So when people talk about 20 to 30 people ruining their economy, well I would say that number may be too big. When ALCOA was negotiating to build factories in Iceland there was a group of 7 people (commonly called the Octopus) that made it all happen. Several noteworthy people who attempted to fairly report the pluses and minuses of such a move found themselves unemployed. So, everyone fears the Octopus. With a population of 300k, how many people would you think run the country????? Its a very beautiful place, but.....they have their share of greed too!! I live in USA and Im scared of what will come next...Imagine how bad those folks must feel. Scary times

I agree. I can't believe this whole thing happened "by accident".

Russia Lends Iceland 4 Billion Euros to Save Banks

Oct. 7 (Bloomberg) -- Iceland got a 4 billion-euro ($5.43 billion) loan from Russia, pegged the krona to a trade-weighted index and nationalized the nation's second-biggest bank after the currency's slump and bad debts crippled the financial system.

The fixing of the krona, at a rate corresponding to 131 per euro, applies for today, according to the Icelandic central bank's Web site. Further moves to boost the currency will be announced in coming days, it said.

The liquidity crisis has pushed down the krona as much as 31 percent against the dollar in the past 30 days as a shortage of credit batters economies reliant on debt. Prime Minister Geir Haarde last night guaranteed domestic bank deposits and gave regulators the power to take over the assets of banks that have run up debts equivalent to 12 times the size of the economy.

``Russia wants to show that it's a financial power and is willing to help solve the global crisis,'' said Beat Siegenthaler, chief emerging markets strategist in London at TD Securities Ltd. ``There are more questions as to why Iceland was not able to get a similar loan from the Nordics or from the European Central Bank or the U.K.''

Before the announcement, the krona fell to as low as 234.5 per euro, according to prices from Nordea Bank AB, Scandinavia's biggest bank.

Iceland's Financial Supervisory Authority today took control of Landsbanki Islands hf, the nation's second-biggest lender, and the central bank gave a 500 million-euro loan to Kaupthing Bank hf, the biggest.

www.bloomberg.com...

Russia wants to show that it's a financial power and is willing to help solve the global crisis,'' said Beat Siegenthaler, chief emerging markets strategist in London at TD Securities Ltd.

If Russia bailed out the US economy it would be a serious display of financial muscle power

[edit on 7-10-2008 by Lucid Lunacy]

I am very dissapointed in the EU. What a bunch of f%$#^g loosers.
Well done russia. I know this comes with a price. How about some new bases in iceland. Anyway, I beleive know this crisis is a setup to have the global elite place their powers for the next biggest global war.

Bloomberg

"It's looking very gloomy for Iceland at the moment,'' said Bjarke Roed-Frederiksen, an economist in Copenhagen at Nordea. "The currency isn't trading at the price the central bank has set and we're already seeing signs that people don't want to accept krona in transactions on Iceland.''

The Icelandic currency is effectively collapsing if it hasn't done so already. This is a very bad sign for Iceland.

Imagine the reaction if no one wanted to accept American dollars in America anymore, or Canadian dollars in Canada.

Okay so let me get this straight. Just so I understand correctly...

US gets a HUGE bailout which is supposed to remedy its financial crisis. It passes. The economy pretends it never got it and collapses anyways.

Russia gives a bailout to Iceland. Again, for the same purpose. They receive it, the economy still collapses.

I wonder if Iceland has some top CEOs chillin at a resort right now drinking pina colidas?

reply to post by Lucid Lunacy


Someone's having a bloody good party that's for sure. I bet there a bunch of the buggers sitting around having massages and laughing their asses off.

I had never heard of ICeland's bank Kaupthing untill about 3 months ago (I estimate) when commercials started showing up everywhere in Belgium for this bank.

I even played with the thought of switching to this bank.. in retrospect I'm very very glad I was too lazy to get around to it.

Kaupthing Bank has just collapsed.

STV

Iceland's fast-moving financial crisis deepened on Wednesday as the government seized control of a large bank it had planned to prop up and the central bank failed to defend the country's currency.

Kaupthing , the island's top bank, was forced to take an emergency loan from Sweden and put its Swedish unit up for sale. Its shares dived on the Stockholm stock exchange by 34 percent before they were suspended.

Iceland will not take a loan from Russia because it will not allow the Russian Navy to build a base in their nation. Iceland is a founder member of NATO and denied any reports of "loan for base" deal.

Due to the continuing crashing of the Icelandic currency, the krona is just about rated higher than the Zimbabwean Dollar - Yes, it's that bad - and the nation could default. The government of Iceland cannot predict the rate of inflation, believed to be over 30% now, and if one of the major banks fails we could see a national default within days.

ukpress.google.com...

Iceland financial pressure remains 1 hour ago Britain added to the financial chaos engulfing Iceland by declaring that it planned to sue over lost deposits held by thousands of Britons with Icelandic bank accounts. The news from London even overshadowed an emergency loan from Sweden to Iceland's biggest bank. The promise of legal action by the British government to recover deposits belonging to 300,000 British account holders with the Icesave Internet bank came after its parent, Landsbanki, was placed in receivership. "We are taking legal action against the Icelandic authorities," British Prime Minister Gordon Brown told journalists in London. "We are showing by our action that we stand by people who save."

reply to post by adrenochrome


$14/$100 billion .. jesus Christ..

Sorry Iceland, you NEED to fail.. start over.. learn from your mistakes please..

reply to post by Rockpuck


Come on be fair.

If you feel that way then you should have the same sentiments on our home of USA with the absurd debt we are in.

It's not like everyone is to blame in Iceland, just as that isn't the case in USA.

Corrupt Government, corrupt corporations.

[edit on 8-10-2008 by Lucid Lunacy]

I heard on Radio2 today that 7 Uk councils had savings in Icesave, one having around 10million deposited.

What happens when a council cannot get its money?
no pay then strikes?
and why were they allowed to invest abroad?

[edit on 8-10-2008 by beefeater]

reply to post by beefeater


Central government can plug the hole.
Interest rates were very attractive over in Iceland, very competitive, and this is how the bankers over there attracted foreign investors.

I think the media overrate the problems or make it worse so people react in panic, which makes it more worse......
Hope the governments can handle this........it seems like there some power feeding it constantly