The Ice Pole

somebloke_2

Just thought it would be interesting to do a quick straw poll on how people are planning to react to the current Icesave/Kaupthing worries.

somebloke_2

(I included the last option for a couple of particularly vocal commentators on the Icelandic banks)

Paul_Herring

somebloke wrote: »

(I included the last option for a couple of particularly vocal commentators on the Icelandic banks)

.. as if they'd choose that option

ManAtHome

If they do go boobies-up I'll get my cash back by buying half of Reykjavik for a couple of hundred quid...

Still not sure whether they've trying to bail out the banks, Iceland, or both - could be bad news for a wodge of the UK high street though.

somebloke_2

Well, this morning it looks like the options have been reduced:

We are not currently processing any deposits or any withdrawal requests through our Icesave internet accounts. We apologise for any inconvenience this may cause our customers. We hope to provide you with more information shortly.

On the bright side though, if the Krona continues to slide then those visiting Iceland from the UK might actually be able to afford a drink out there on their holiday.

Shame really, we honeymooned there last year. Was planning to go back in November for our anniversary, but cancelled as we have a baby on the way. Could have got a lot more value this year!

spooksisgreat

I'm very sorry for all those worrying about losing their savings in Icesave.
I have a bit of a selfish question to ask MSErs. My son is going on a geography trip to Iceland in May next year. Is it worth me buying krona now or wait awhile, or leave 'til next year? I don't like people making money out of others' misfortune but the trip is costing a lot, so any savings made will help. The trip was paid for on the teacher's credit card so I hope it will be safe.

runciblespoon

I wouldn't buy any Krona. It's been pegged against the Euro as an emergency measure. I can see one of the following scenarios playing out:

• When unpegged the Krona continues to slide
• It stays pegged and Iceland de-facto adopts the Euro
• Iceland actually adopts the Euro

I can't see a sudden upward spike in the Krona given Iceland's woes, which I doubt are going to improve by May. There's a chance the panic is overblown and the Krona rises a bit, but it's a very risky strategy to buy it now.

With a link to the Euro you're also exposed to the Euro exchange rates, which are trading at about the best they've been for the 6 last months but still 20% down from last year. No-one can say whether it'll be better or worse in May.

Basically buying Krona right now is like putting it on the 3.30 at Newmarket. If you can afford to lose the cash you gamble then fine, otherwise I would stay in bargepole territory.

spooksisgreat

Many thanks to Runciblespoon. All sound advice. I'm useless at betting on horses and hate wasting money. Great. I'll go and buy some new shoes and leave the mad world to sort itself out. Thanks again.