Iceland teeters on the brink of bankruptcy ,this is a start of European and US fall?

[pajomife]

One of the richest countries in world,with a a high level of life,almost a image of perfection,are close to bankruptcy,remembers me the similar case in Argentina few years ago ,when the peoples cant get their own money from the banks.
And if this bankruptcy spreads all countries in Europe or US? What we should do?Go to the bank and pick all our money before is to late?I'm really concerned.


http://community.livejournal.com/ont...l/1017215.html

[Yorkshireman]

I should imagine your government is garunteeing deposits upto a certain amount, most European nations are.

[Erik]

I should imagine your government is garunteeing deposits upto a certain amount, most European nations are.

In my country, the Dutch Icesave clients just learned the first 20.000 euro's of their deposits are "guaranteed" by the Icelandic government, and the next 80.000 euro's are guaranteed by the Dutch government.
(until today I lived under the impression that the Dutch government guaranteed the full first 100.000 euro's itself)

Problem is: The Icelandic GOVERNMENT is now saying they can not pay the money they promised to guarantee.
Basically, they want to pay their own citizens, but not the foreign clients.

I'm sure the Dutch government will step in and pay for its citizens, but that's not fair on Dutch taxpayers.

I hope the EU will put a trade embargo on Iceland

[Yorkshireman]

I'm sure the Dutch government will step in and pay for its citizens, but that's not fair on Dutch taxpayers.

Exactly whats happening in the UK now, we have 300,000 people who are customers with Icesave. We have to cover the entire cost now.

Who know's they might send us a few tonnes of cod.

(I don't know why these people put their money into a foriegn bank over the internet, don't they know higher interest = higher risk.)

[Erik]

Exactly whats happening in the UK now, we have 300,000 people who are customers with Icesave. We have to cover the entire cost now.

Yes, we are in the same boat.
In the Netherlands there are 50.000 people with a savings account at Icesave, which is a lot for a country with just 16million inhabitants.

Who know's they might send us a few tonnes of cod.

Or sell their women as slaves

(I don't know why these people put their money into a foriegn bank over the internet, don't they know higher interest = higher risk.)

Maybe because our governments and all the financial experts kept hammering on the "fact" that the saving account are "absolutely 101% fully _G_A_R_A_N_T_E_E_D_!_ or so help us GOD!" ?

(guess they forgot to mention that the word "guaranteed" doesn't mean a thing)

[white-wolf]

Exactly whats happening in the UK now, we have 300,000 people who are customers with Icesave. We have to cover the entire cost now.

Who know's they might send us a few tonnes of cod.

(I don't know why these people put their money into a foriegn bank over the internet, don't they know higher interest = higher risk.)

And now, the goverment will pay the customers' money (who has the money to put on bank thinking intrest rate[read risk rate here]) with money of all taxpayers.

I think it is unfair to taxpayers.

[Aetius]

I should imagine your government is garunteeing deposits upto a certain amount, most European nations are.

This is true, however it is a false hope.

The government has enough money to insure the failure of a few banks, however if a massive failure occurs the government will not be able to refund everyone their account holding maximum. ($250,000 in the case of USA)

[Erik]

The government has enough money to insure the failure of a few banks, however if a massive failure occurs the government will not be able to refund everyone their account holding maximum. ($250,000 in the case of USA)

The government can always refund the saving accounts of its own citizens, but the way to do it is kinda lame: tax.

If, on average, every American looses $200,000 and comes knocking at the government, then the same government can simply increase taxes by $200,000 per citizen and pay everybody off.

Another way they can do it is by printing more money.
But that will reduce the value of the currency, of course.

[Ludicus]

I should imagine your government is garunteeing deposits upto a certain amount, most European nations are.

Yes. Up to 50,000 euros.

[Oklop]

I kind of read somewhere that they asked Russia for help. Is this true?

[Pallantides]

Maybe it is time to come back to daddy.

I kind of read somewhere that they asked Russia for help. Is this true?

haha lets hope not.

[Yorkshireman]

Well the European markets have recovered a bit today. The Russian stock exchanges Micex/RTS have closed today until friday, after the share prices fell.

[Norge]

This was a long time in the coming, there have been warning signs for many years now. Their banks have been far too expansive while practically living on borrowed money. It isn't the first time this has happened, the last time Norway, Sweden and Denmark bailed them out and I guess it won't be different this time either.

I kind of read somewhere that they asked Russia for help. Is this true?

Nevermind, guess they did.

[Yorkshireman]

Icelands financial services sector is 9 times larger than it's GDP. Basically, once people panicked and started a run on the banks they did'nt have the cash to pay out.

The Icelanders better learn to fish again.

[Andrew87]

I kind of read somewhere that they asked Russia for help. Is this true?

yes, it's true.

http://www.russia-ic.com/news/show/7204/

As western allies failed to provide support to help ease Iceland's financial crisis the country was forced to turn to Russia and seek a 4 billion-euro loan from it.

"We have not received the kind of support that we were requesting from our friends," said Geir Haarde, Iceland's prime minister. "So in a situation like that one has to look for new friends."

Russia’s finance ministry originally denied the news. Hours later, however, Russian finance minister Alexei Kudrin admitted Russia had indeed received a loan request, had been reviewing it and had been positive about it because Iceland was a country abiding by strict fiscal discipline.

In spite of the new friendship, Mr Haarde said it did not extend to military cooperation, refuting the suggestion that Russia might be given access to an airbase vacated by the US air force in 2006. "We are a founder member of NATO," noted an official, "categorically denying" any such deal.

[Pallantides]

yes, it's true.

http://www.russia-ic.com/news/show/7204/

damn colonists.

[Exarch]

awesome
will it be like 1990s russia, where russian women threw themselves at rich westerners for $$ and food?

icelandic women are hot.
well, i'm off to book a ticket to iceland

[The Noble Lord]

icelandic women are hot.

I second that, they are just hot hot hot......

How much is the ticket to Iceland?? Anyway, I'll see you there

[Oswald von Wolkenstein]

awesome
will it be like 1990s russia, where russian women threw themselves at rich westerners for $$ and food?

icelandic women are hot.
well, i'm off to book a ticket to iceland

ahh you don't need a financial crisis for that. Iceland was already the easiest place in the world to get laid.

(it leads the world in per capita dildo purchases)

and this is the thing -- I was told in May that the economy was going to collapse and that Iceland would tank among the first -- on May 17th to be precise -- if I heard this then from a drunken Insider -- then the big boys heard this when they were sober before the year began.



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[eddy_purpus]

awesome
will it be like 1990s russia, where russian women threw themselves at rich westerners for $$ and food?

icelandic women are hot.
well, i'm off to book a ticket to iceland

well , we are going