Iceland

Andrew64

Count_Dante wrote: »

The article also says that the credit rating of Iceland is also falling.

Iceland has been downgraded to A-, which is unusual for a developed western country. By comparison, Ireland is AAA (like the USA). So never mind Icelandic banks going bust - Iceland might go bust! I have a Danish brother-in-law working as a geologist in Iceland and he's telling me some scary things.

FraudBuster

Old news, but why should savers in Icelandic Banks be supported by the UK taxpayer following allegations that their financial system has been involved with the Russian Mafia?

The fast pace of change has also brought whisperings of corruption. Iceland, once a conduit for trade from behind the iron curtain, has occasionally been linked to the Russian mafia, though no evidence has ever been presented.

http://www.ft.com/cms/s/0/406731f4-ef44-11d9-8b10-00000e2511c8.html?nclick_check=1

opinions4u

Andrew64 wrote: »

Iceland has been downgraded to A-, which is unusual for a developed western country. By comparison, Ireland is AAA (like the USA). So never mind Icelandic banks going bust - Iceland might go bust! I have a Danish brother-in-law working as a geologist in Iceland and he's telling me some scary things.

Oh on!

The price of cod might go up.

It's already £2.50 locally.

chodges84

FraudBuster wrote: »

Old news, but why should savers in Icelandic Banks be supported by the UK taxpayer following allegations that their financial system has been involved with the Russian Mafia?

http://www.ft.com/cms/s/0/406731f4-ef44-11d9-8b10-00000e2511c8.html?nclick_check=1

Because it has never been proved perhaps?

If UK tax payers have to bail out reckless lenders like Northern Crock and Bankrupt and Bingley then they should also guaranatee UK savers who chose to invest their money within and Icelandic bank.

blizeH

If Kaupthing and Icesave (Llandsbanki or whatever) merge, will that mean my £70k or so I have split between the two will only be guaranteed to £50k?

Cheers

isofa

blizeH wrote: »

If Kaupthing and Icesave (Llandsbanki or whatever) merge, will that mean my £70k or so I have split between the two will only be guaranteed to £50k?

Cheers

Depends what they do with their banking licences, at present KE is a UK bank, operated by KFS Ltd.

Mr_Mumble

LucyTheDwarf wrote: »

In response to edwinac, you suggest they just print money? It would be worthless, because of the hyperinflation this would cause.

Nonsense, the deposits in Icelandic banks here are less than 1.5% of a single years GDP, that is not going to lead to hyperinflation. Of course printing money is bad but then nobody seemed to have a problem with it last year when the government's measure of broad money supply (M4) was rising at 20%pa.

The British government has to protect depositors money up to the limit of the insurance scheme, the way it does that is by printing money. Money was printed for Bradford & Bingley and they'll do it again for any big institution that uses the FSCS.

FraudBuster

The Icelandic cheerleaders and PR Teams have been busy today.

baby_boomer

How would you feel if your pension fund was forced to repatriate all your investments to the UK? It's an extraordinary thing Iceland is considering.

Money_Grabber13579 wrote: »

Let's think about this rationally now shall we? If the Iclandic government stepped in with its 3rd largest bank before it went bust, is it not kind of obvious what they would do for the largest and 2nd largest?

And if the banks were larger than the economy?

edwinac_2

baby_boomer wrote: »

How would you feel if your pension fund was forced to repatriate all your investments to the UK? It's an extraordinary thing Iceland is considering.

I find it sickening that comfortable middle class Englishmen expect pensioners of a tiny foreign country to guarantee their life savings!

And if the banks were larger than the economy?

Time to join a bigger economy...