Iceland Krone Meltdown.

ianmr65

Meltdown wrote: »

I blame it on them playing the board-game "Monopoly" when they were little.

A bank error in your favour, collect £35,000.

doire_2

ianmr65 wrote: »

Being as iceland is the richest country in the world on a per capita basis, has an economy which is robust to the point of overheating, and intrest rates that would make you're hair curl. A fall in the price of the krona is a good thing. It will enable them to be more competetive, on exporting their (limited) goods and extensive financial services.

Course it will hurt the icelander's themselve a bit on imports too but that's a good thing too.

What i fail to understand, in VITO's post and others is this.

We have banks that are great value, robust, and succesful, in iceland and india ect. They are well capitalised, Liquid, and have little or no exposure to toxic derivatives, and western property markets. Fully supported by their govermrnts, and in ICCicis case now racein away to become as big as any of the so called big five - Iccici market cap £10bn, Hbos market cap £17bn. This makes them in my view as safe as any.

People have been clutching at straws with these banks for months. Posting rubbish like the first post in the hope, i guess of stemming the flow of cash to them, and diverting it back to the 'safety' of the so called UK banks.

Where it should be noted we have already had one bank failure. Where another is rumoured to be on the brink of being bought out prior to another failure.

Where the BoE / FSA had to go all guns blazing to deny liquidity problems in a third, and biggest so far. Who the previous week had issued a bond at 9%!!!!! ie 3% above bank lending rates.

And where the UK government has just gone on a gung ho mission to the rest of the world's banks in a move to buy (not cover) BUY mortgae backed securities of unknown provenance (they could be worth a lot less than banks think they) using TAX PAYERS money!!!

Which bank would this be?

ianmr65

Stompa wrote: »

http://www.ft.com/cms/s/5f9301dc-fa51-11dc-aa46-000077b07658.html

http://www.ft.com/cms/s/0/4677a370-fad7-11dc-aa46-000077b07658.html


A more positive comment, than the report Stompa links too. Bloomberg are a great deal more upbeat.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aP_9lyHK6A3k

ianmr65

doire wrote: »

Which bank would this be?

Don't like to spread rumours about specific banks. But it's one of the smaller banks that used to Be a B uilding society

Greycrow

ianmr65 wrote: »

Don't like to spread rumours about specific banks. But it's one of the smaller banks that used to Be a B uilding society

A lot of B's there.;)

ianmr65

Another positive from the FT

http://www.ft.com/cms/s/0/18346746-fad7-11dc-aa46-000077b07658.html

ianmr65

And yet more from the FT

http://www.ft.com/cms/s/0/4fecfbb2-fb4a-11dc-8c3e-000077b07658.html

In line with the fed and the BoE, the Iceland central bank is auctioning cheap short term money.
They also have athe other scandinavian central banks to call on.

So all good.

ianmr65

Another pretty positive from the FT.


http://www.ft.com/cms/s/0/162ac164-fb6a-11dc-8c3e-000077b07658.html

I get the feeling that the FT is running a one paper campaign to counter the 'slander' and stop all the UK negative reporting. Course they are also covering themselves in case anything should go wrong.

But individual articles, on-line, get updated through the day and night, before publication in the paper, and each update is just slightly more up beat than the last. Intresting.