What happens when a country goes bankrupt?

blisk

Icelanders are lucky, they can live in igloos.

purch

My feeling is that the Euro wouldn't cope with any sort of serious financial problems like that

The Euro has benefited from relatively benign inflationary expectations, and the 'cheap credit' induced period of global growth for virtually the whole time since it was 'invented'

As a grandoise Financial Engineering experiment it has been interesting to watch it develop and mature, but I cannot see how this Synthetic currency can hope to survive this current mess intact.

The question has to be, which nation will be the one to start the whole deck of cards falling !!!!!!!!!!

guyrulius

Argentina - bank accounts were confiscated to pay the national debt.

http://uk.youtube.com/watch?v=rH6_i8zuffs

hethmar

Genuine question - WHERE does Iceland get its money from? I cant think of anything except a bit of fishing - there must be something?

WTF?_2

hethmar wrote: »

Genuine question - WHERE does Iceland get its money from? I cant think of anything except a bit of fishing - there must be something?

Foreign savers attracted by high interest rates.

sabretoothtigger

They have free power and heat, I think their fundamentals are good they just overcooked things a tad

Walletwatch

Not as serious as a country going bankrupt, but was just watching Michael Bloomberg on BBC Hardtalk claiming that Schwarzenegger has written to the Treasury secretary claiming that California needed to borrow money but could not get a line of credit from any bank. So he's turning to the Treasury to lend California a sum of seven billion dollars..

What with the Fed claiming that it will subscribe to CPs now, I wouldn't be surprised if they set up stalls in every subway station and started handing out mortgages, car and personal loans !!! A lender of last resort not only to banks, but also to the end consumer.

sabretoothtigger

Not as serious as a country going bankrupt

'As of 2006, California's GDP is larger than all but eight countries in the world'

http://en.wikipedia.org/wiki/California#Economy

fc123

hethmar wrote: »

Genuine question - WHERE does Iceland get its money from? I cant think of anything except a bit of fishing - there must be something?

This is from FT 2005........seems like Russia needed some help with a bit of washing.

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

Which is why I am so cross about the whole Bauger stuff (posted on 'angry' thread)

Walletwatch

sabretoothtigger wrote: »

'As of 2006, California's GDP is larger than all but eight countries in the world'

http://en.wikipedia.org/wiki/California#Economy

Good piece of statistic, but again to reiterate my point, it is not that CA is going bankrupt, it only has a credit availability issue