ABC 20/20 Video: Iceland's Financial Crisis In 6 Minutes

• Scan the headlines on Iceland's banking crisis

In the early 21st century, Iceland experienced one of the most spectacular cycles of boom and bust in history.  For centuries, Iceland was a simple fishing society, largely shut off from mainland Europe. The people survived off the sheep in the meadows and the fish in the sea. For cultural sustenance they had elaborate sagas -- intricate tales of fairies and goblins, heroes and ghosts -- that would inspire J.R.R. Tolkien and other fantasy writers.  

At the peak of Iceland's boom, Stefan Alfsson left his fishing boat and started trading commodities for an investment bank. "We could do more," he said. "I got a bigger house, bigger and more cars, better snowmobiles."

Then a modern saga began to unfold -- that of a nation of fishermen who became millionaires, only to lose it all and return to the seas.

Comments

[Dr. Pitchfork]

I had no idea Brigitta Jonsdottir was a bailout protester before joining the parliament. If I remember correctly, she was involved with Wikileaks and the release of documents about the Icelandic banks. She must be very proud of what they've accomplished.

[john]

Danish government upheaval

http://www.icenews.is/index.php/2011/03/08/danish-government-upheaval/

[snip]


Denmark’s government has lost two of its ministers in just one morning, throwing national politics into disarray.
Tina Nedergaard, the Danish Minister of Education, has resigned her post this morning in an unexpected move made for “personal reasons”, as she worded it in a statement.....

.....Nedergaard is a party compatriot of Birthe Ronn Hornbech, Minister of Immigration, who was herself sacked from the Danish cabinet this morning.

RUV reports that Hornbech has been in the spotlight since the United Nations Refugee Agency challenged the Danish government over why Denmark has for years gone against the UN by refusing citizenship applications from Palestinian children and young adults who were born in Denmark.

[john]

Icesave referendum ballot question revealed

http://www.icenews.is/index.php/2011/03/08/icesave-referendum-ballot-question-revealed/

[snip]


The Icelandic Ministry of Internal Affairs has begun advertising the referendum which will take place on 9th April over the so-called Icesave law which Althingi passed on 16th February and the President decided to send to a public vote. Absentee voting starts on 16th March, Visir.is reported.

[john]

British Fraud Office Arrests 7 in Inquiry of Icelandic Banks

http://dealbook.nytimes.com/2011/03/09/british-fraud-office-arrests-seven-in-iceland-bank-inquiry/?partner=rss&emc=rss

[snip]

LONDON — Britain’s Serious Fraud Office arrested Vincent and Robert Tchenguiz, two real estate entrepreneurs, on Wednesday morning in relation with an investigation into the collapse of the Icelandic investment bank Kaupthing.

The brothers are among seven men who were taken to police stations in London for questioning, the fraud office said.

The Tchenguiz brothers are well known in London business circles and are also fixtures of the Monaco jet set; pictures of them regularly appear in glossy society magazines.

[john]

Top UK businessmen among 9 arrested in bank probe

http://news.yahoo.com/s/ap/20110309/ap_on_bi_ge/eu_britain_iceland_financial_crisis

[ENEN]

DISCLAIMER: By reading further you agree to hold me harmless for factual errors.
References to real people (implicit included) only reflect my opinion(s.)

Bernanke's free reserves for TBTF banks, when combined in
happenstance with Congress' puppets blaming China, threatens
turning the U.S. into Iceland and Japan at their worst moments.

During Iceland's bubble and Japan's crash, people borrowed cheap yen
(though they eventually learned fiscal works in a debt bubble,)
and in vested in Icelandic crowns (krona.) It thus siphoned off
from Japan's recovery.

If Bernanke and Congress, one helping the TBTF banks, the other helping
its puppet masters, get their way, it seems quite possible people will
borrow dollars simply to invest in yuan, and yuan trading offshore China
has been ramping up, and Japan and China have recently facilitated dollar-free
direct yen-yuan exhanges.

This is all the while Social Security and Medicare take the fall, and, actually,
when Bush first proposed $US trillions in tax cuts aimed at the super wealthy
lot of people presumed the purpose was squeezing those programs.

It's the same in Europe, and then with the world's greatest currency traders
piling on top of the demagogues.

For these people the free reserves / Liquidity Trap / benchmarking to 0% /
what-the-hecking with those who sold equity out of their bubble assets by
making good decisions--dutifully retired people--savers everywhere


http://awurl.com/uFqT68rPU#first_awesome_highlight


such things as also clobbering the rupee is simply collateral damage.


http://www.ft.com/cms/s/0/2dd28108-2938-11e1-8b1a-00144feabdc0.html#axzz1hBROXiAv


http://brief.ly/vuvrh2/

Did someone create Wall Street's Mini-Me?
http://ftalphaville.ft.com/blog/2010/08/25/325376/mishkins-very-own-icelandic-blow-up/

http://www.youtube.com/watch?v=tkmi_UTsjtE



The problem with this,

http://www.businessinsider.com/feds-will-sell-foreclosed-properties-to-investors-to-rent-2012-1

notwithstanding "loss sharing," even with the smaller banks
given their own bone in this respect, is

1) it's not this, which works honestly where non-recourse prevails, and then that
actually promotes healthy risk-taking.

http://krunchd.com/thehonestpath

and 2), we're talking vast sums and the loss sharing could be part bullxxxx, especially
higher up the food chain you go.
The sums certainly dwarf the begrudged loans that students eagerly seek for sharecropper'hood.

They're far greater than the cost of incarcerating people instead of educating them.

But then, you know, all the above is still small potatos (for Dan Quayle: potatoes)
compared to NDAA. To me the right to habeas corpus is
invaluable.



WARNING:
IMAGINE SOMEONE SAYS TO YOU: "YOU KNOW, YOU'RE NOT ACTUALLY ON A CAMPUS.
YOU CAN DO WHATEVER YOU WANT." AND SO I DID.
AND SO: FOR ADULTS ONLY. CONTAINS CONTENT OF AN ADULT-ONLY NATURE.



ENEN
http://evernewecon.weebly.com/
Have a nice day.

[Joseph Conrad]

What brought down Iceland and the rest of EU bankers was GREED & ARROGANCE. Iceland and indeed ALL EU nations have only JPMorgan's 'Ms. Mastersen' to blame for the chaos gripping myriad economies. Her 'creative greed and Dimon's arrogance was a 'MATCH MADE IN HELL' for the rest of the world. And not a SINGLE 'Too Big to Fail' executive team member has gone to JAIL for Fraud, RICO Violations Galor, Tax Evasion, Grand Theft, Bribery, Conspiracy & Perjury. Heck, no one with any power is even INVESTIGATING THEM. Meanwhile, those who 'took it in the shorts' JUST WHIMPER instead fo putting in anothe rclip and 'going hunting' for the THUGS, THIEVES, LOOTERS & LIARS!