Financial crisis in Iceland, from Uboat.net

[Onkel Neal]

Gummi of Uboat.net posted some comments about the problems they are having. Pretty rough. Anyone here from Iceland?

http://uboat.net/


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[Konovalov]

Bad news in Iceland. :nope: Amazing to think that a dozen or so people in the banking sector there could bring the country to it's knees. :o

Then again this might be a great time to travel to Iceland for a holiday.

[AVGWarhawk]

It is unbelievable to read something like that this day in age. It read like a passage from a WW2 diary.

[Captain Nemo]

Then again this might be a great time to travel to Iceland for a holiday.

I was in Iceland back in December/January and it's a very interesting place to visit. At the time I went it was expensive, pint of beer £5-6, but it sounds like the crunch has made it very cheap. Having said that, Iceland relies heavily on imported goods and if their currency has been devalued by 90% I don't know how that would really make things cheaper as inflation would be astronomical. Also, I'm not sure the Brits would be welcome at the moment, what with using anti-terror laws to seize Icelandic assets in the UK.

Nemo

[XabbaRus]

Konovolov is an Oz he'd be OK.

[Kapitan_Phillips]

According to XE.com:

1 GBP (Great British Pound) = 189.062 ISK (Icelandic Kronur)

And 1 ISK is equivalent to half a British penny :-?

(And for those of you who dont speak Europe; 1 USD = 121.777 ISK)

This reminds me of Germany post Great War :-?

[XabbaRus]

I disagree with one thing he wrote. My understanding is anti terror legislation was used AFTER the Icelandic PM told UK depsitors to go to hell....AFTER the bank went belly up.

[Konovalov]

Konovolov is an Oz he'd be OK.
:lol: Yeah. I'll just have to flash my passport wherever I go there so as to not get set upon by a crazed mob.

[Jimbuna]

I've a friend living in Reykjavik and when I told him to spare a thought for all the UK businesses who had lost money in Iceland he responded (in a polite way) by asking me to spare a thought for his fellow countrymen who now found their possessions and savings just about worthless. :-?

[Skybird]

Interesting to see how the interest in such stories grows the closer the place it where they take place. In Argentine some years ago, things were more serious, I would say, but almost nobody gave a damn.

However, Argentine is on the path of recovery, somewhat, so even if Iceland may fall even deeper, sooner or later it reaches the point from where things can only improve again.

May it serve as a warning to all who think the old financial system could be left untouched. It were serious inherent flaws that prevented the system from functioning properly and as advertised, that led to this. Just having sympathy for the Icelanders is not enough. In fact, it is worth nothing. The consequences we draw from the lessons learned is what decides what our sympathy will be worth.

In germany, banks are hesitent to make use of the finacial aid package the government readied for them to raise trust and keep capital flowing between banks. That is because accepting aid from that package would mean to limit the monthly income of top managers to half a million, which is one of the conditions the government has (rightfully) attached to it. The govenrment already begs them on it's knees to make use of the package, to prevent even more damage for the economy. but it seems that many bosses think that it is better to milk their bank even more and by that they accept that maximizing of damages to the state and the community instead of putting limits to their greed for more excessive monthly wages. that such people will never learn the lessons and enver will act not responsibly, but selfishly, is clear, and that the needed changes and corrections will not happen if things are left to these kinds of people, is a certain thing.

[Diopos]

Interesting to see how the interest in such stories grows the closer the place it where they take place. In Argentine some years ago, things were more serious, I would say, but almost nobody gave a damn.

However, Argentine is on the path of recovery, somewhat, so even if Iceland may fall even deeper, sooner or later it reaches the point from where things can only improve again.

May it serve as a warning to all who think the old financial system could be left untouched. It were serious inherent flaws that prevented the system from functioning properly and as advertised, that led to this. Just having sympathy for the Icelanders is not enough. In fact, it is worth nothing. The consequences we draw from the lessons learned is what decides what our sympathy will be worth.

In germany, banks are hesitent to make use of the finacial aid package the government readied for them to raise trust and keep capital flowing between banks. That is because accepting aid from that package would mean to limit the monthly income of top managers to half a million, which is one of the conditions the government has (rightfully) attached to it. The govenrment already begs them on it's knees to make use of the package, to prevent even more damage for the economy. but it seems that many bosses think that it is better to milk their bank even more and by that they accept that maximizing of damages to the state and the community instead of putting limits to their greed for more excessive monthly wages. that such people will never learn the lessons and enver will act not responsibly, but selfishly, is clear, and that the needed changes and corrections will not happen if things are left to these kinds of people, is a certain thing.

Eventually we will be thinking if there must a limit on how rich a person can be...:hmm:

[kranz]

yeah, big deal. The problem will start when you have to take a cart to pay for a loaf of bread.

[JHuschke]

Bad news in Iceland. :nope: Amazing to think that a dozen or so people in the banking sector there could bring the country to it's knees. :o

Then again this might be a great time to travel to Iceland for a holiday. Most of the times..a BIG problem comes from a little "accident" or whatever you want to call it. I hope Iceland can get back on it's knees, what would it be like without them? Hang on tight ! :arrgh!:

[Skybird]

Eventually we will be thinking if there must a limit on how rich a person can be...:hmm:
More realistically one should think about wether a boss really is doing so much more and important work than the clerk at the counter so that the boss deserves to earn 500 times as much per hour.

as long as a boss does not show up with a cure to cancer or saves the world from war, or cleans the atmopshere from greenhouse gas and brings the biosphere in order, I would say: no.

there were times when the relation of wages between top and bottom where in the range of factors in the 20s. Which is more realisrtic, I think. What is being done today, simply is madness. It happened becasue the law of the jungle took over.

Maybe I need to deal with a world gone insane and now being driven by the law of the jungle, but neither must I call that a good world, nor must I tolerate the conditions and not fight for improvements - if not for myself, than at least for our children.

the greater the polarisation within a society or civilisation, the more social tensions and growing pressure, the more potential for conflict, rebellion of the slaves, revolution - and in the end, war and/or civil war. It is last but not least in the interests of the richer ones not to allow things detoriating too far. He who claims all food on the table just for himself and his clan, sooner or later ends with a poison pill in his Martini.

How many Rolls Ropyce can you drive simultaneously? In how many palaces can you live at the same time without turning red? How many zeroes on your banking account before you become dizzy? When is enough actually enough?

[Onkel Neal]

Konovolov is an Oz he'd be OK.
:lol: Yeah. I'll just have to flash my passport wherever I go there so as to not get set upon by a crazed mob.

Or do like me when I travel abroad, just wear your BUSH IN 2008 t-shirt :smug:

[Dan D]

I know a guy who is afraid that he has lost all his money, so I did some research for him:
First of all, one has to realise that Iceland has only 300.000 people!
That is the population of a medium-sized city, at least here in Germany. To go bankrupt with a such a small „business company“ is not unthinkable and not impossible.
The Islandic banks alone owe 61 billion Euro to depositors. The German branch of the Kaupthing bank which is one of the 3 Islandic banks who all have been nationalised recently, ows about 308 million Euro to 30.800 German depositors. The German depositors have no longer access to their bank accounts. The bank has blocked the online access. In reaction the German financial supervision has imposed a moratorium to stop money transfer from Germany to Iceland. The deposits are secured by the Iclandic deposit guarantees fund only which is worth shice under the circumstances.
If you look at the homepage of that fund, it says:
„Are deposits in foreign branches of Icelandic banks guaranteed by the Fund?
Yes. The Fund’s guarantees extend to all customers of Icelandic banks and their branches, both domestic and foreign, irrespective of legal address. Foreign deposits with subsidiaries of Icelandic banks are guaranteed by the guarantee funds in the countries concerned.“
http://www.tryggingarsjodur.is/QA/

This does not go together with statements by the Islandic head of governement which you could read in the news, that only Islandic customers would get payments from the fund. Gordon Brown became very upset at this point because Iceland „as a member of the European Economic Area (EEA) has adopted all EU Directives making Iceland an integral part of the European Internal Market for financial services and consumer protection. The Icelandic deposit guarantee scheme is based on the EU directive 94/19/EC of the European Parliament and of the Council.... Iceland is legally obliged, in the same way as countries which are members to the EU, to provide the minimum deposit protection of EUR 20,000 as stated in the EU directive on Deposit Guarantee Schemes.“(from the fund's page).
Concerning Germany, the Islandic banks did not join the German guarantee fund which in comparison guarantees you a 1,5 million Euro protection.

From the news you get the impression that the Islandic head of state does either not know what he is talking about or that the situation is that deperate: Iceland is unable to pay anyway.

Gordon Brown has threatened to sue Iceland. The situation in England is different from that in Germany. Far more depositors have paid much more money into the Icelandic bank accounts, not only individuals but also English town councils. Because of the different situation England now has given loans to Iceland with the appropriation that the English depositors get their money back, if I understand the news from England correctly. The German depositors can not hope for such a political solution. At least at present, the German government officials are not willing to help out here because according to their reading, the depositors should have known that they are running a high risk to lose their money and have to blame themselves for being too greedy.

So if you can't get your money back and no compensation either because the fund it too small or rather the Icelandic state can not guarantee payments because it is insolvent, the last option for claimants would be to see, if a case can be made against their own national state for faulty bank supervision when Islandic banks entered the market.

Here is the link for the application for compensation from the Icelandic fund:
http://www.tryggingarsjodur.is/modules/files/file_group_26/payments/Application%20for%20compensation.doc

[XabbaRus]

Well there was one guy up here who had money in Icesave or whatever it is called.

About £200,000 I think. He read that the bank was facing trouble and BEFORE it stopped people withdrawing he moved the money over to his UK mainland bank account.

He got an e-mail from both ends confirming the transfer had taken place. He checks his account and sees the money sitting there. Then Thursday after Icesave has stopped withdrawals he checks his account and he sees the money has been transferred back and no one told him.

So he is claiming it is stolen. I sympathise with him. I know it can take a couple of days even over the net for money to go through but he moved it several days before the announcement on a freeze on withdrawals.

[kiwi_2005]

I tried to post in the forums there, wanted to answer a guys post who wanted to know if any Japanese subs during ww2 came near New Zealand waters but everytime i went to send post i would get a message about it being spam! :shifty:

I can never post in that forum always comes up that im a spammer:damn: And yes i do have JavaScript enabled.

[Jimbuna]

I came across one person in RL who actually made the comment, "I'm glad my wife shops at ASDA and not Iceland" :lol:

[Stormin Norman]

Massive protests using motorbikes (Neil will love this) in Iceland.
http://www.ireport.com/docs/DOC-143003

[Marcantilan]

Interesting to see how the interest in such stories grows the closer the place it where they take place. In Argentine some years ago, things were more serious, I would say, but almost nobody gave a damn.

However, Argentine is on the path of recovery, somewhat, so even if Iceland may fall even deeper, sooner or later it reaches the point from where things can only improve again.

Well, we had pretty rough times back in 2001. Our government freezed all bank accounts with foreign currency and exchanged it for pesos.

Besides that, you couldn´t extract those pesos from the bank (just spare change every day).

Argentina collapsed and the president fled from the "Pink House" (no kidding, that´s the name of our presidential palace). Poverty increased by 100 %, so on, so on.

Now, we are walking the same path, while the government is trying to secure the pension funds (my pension fund, por example!) for its use.

In my humble opinion, Iceland is in the paradise right now if compared to past, present or future Argentina. At least they don´t have our corrupt politics in the office.

[Jimbuna]

Interesting to see how the interest in such stories grows the closer the place it where they take place. In Argentine some years ago, things were more serious, I would say, but almost nobody gave a damn.

However, Argentine is on the path of recovery, somewhat, so even if Iceland may fall even deeper, sooner or later it reaches the point from where things can only improve again.

Well, we had pretty rough times back in 2001. Our government freezed all bank accounts with foreign currency and exchanged it for pesos.

Besides that, you couldn´t extract those pesos from the bank (just spare change every day).

Argentina collapsed and the president fled from the "Pink House" (no kidding, that´s the name of our presidential palace). Poverty increased by 100 %, so on, so on.

Now, we are walking the same path, while the government is trying to secure the pension funds (my pension fund, por example!) for its use.

In my humble opinion, Iceland is in the paradise right now if compared to past, present or future Argentina. At least they don´t have our corrupt politics in the office.

I think you hit the nail on the head with your last sentence.

The main difference between Agentina and Iceland is the corruption in political circles.