Deudalandia
We could say that statistically in Iceland are women more beautiful and the guys in the world, because with only 300,000 inhabitants have succeeded in placing a Miss world and they have two winners of the championship of the world's strongest man. In addition, they are a people ready since 99.9% of the population is literate and to finish the slaughter, live much as their life expectancy is 81.5 years, the second highest in the world. All this together with the air pacifist who have not offered the army. Without doubt a place to live, do not bother you if the cold and darkness. In fact, the chess Bobby Fisher ended his days there, although it was not very sane.
But what it does not feel proud, and if we win by win is in debt. If six years ago had wanted to pay all debts that have their banks abroad, they would have consisted of each of its inhabitants about $ 26,000. Much huh? but the worst comes now, if you wanted to pay its debts today, they would have to pay $ 280,000 apiece.
Much has been written on the net about the situation in this country (even commented here six months ago) and little new we can provide. It really impresses us is that a European country can go bankrupt but remember that only has 300,000 inhabitants and therefore we need to give it the importance it has. In fact, the Banco de Santander (which posts to wander, we could imagine in bankruptcy) has nearly 130,000 employees which means they may have more workers than Iceland whole.
At the end everything comes to an Icelandic saga root in interest rates so high that they had (15%) in an environment of moderate inflation, thereby sparing amount of international (mainly English) to invest their savings and there it was worse for the Icelanders, the amount of loans it asked both the public and businesses and banks outside the country, attracted by lower interest abroad. The successive devaluations of its currency did the rest.
A few days ago, a British financial portal made public the letter sent by the Internal CEOs of Landsbanki, one of the great institutions nationalized the country, to employees (Short and hit Expansion):
"Times have changed. In recent weeks, the international financial markets have deteriorated and were not seen since the beginning of the century. Many banks have fallen and others will do. Governments are taking extraordinary measures to adapt to change. Iceland is now the victim of the lack of liquidity that plagues the world. "
As you can see, there is no risk-free return and eventually much higher rates irrationally low as just giving problems. In this case will be that the IMF has to come to the rescue as if it were a Third World country and launch a plan of 4,500 billion Euros. Everything is a clear example of which was bought a bike that they could not.
As curiosity and demonstration of that money is very miedica, Icelanders who no longer have confidence in its banking like crazy looking for alternatives for their savings and including luxury watches have become a good alternative, at least so says a representative Rolex.
"Customers want something they may have in your hand. They have no confidence in the numbers of their computers, because they saw these numbers fade "
This statement must be fuck with tongs (it seems more a press release of the watch), but it is clear that if there are any good tangible fear gives us more security.
And to finish with the Icelandic saga and the wisdom that lately are taking the rating agencies, let us not forget that not many years ago the bonds of Iceland had the credit rating of AAA, (and subsequently downgraded to Aaa, which is not bad) let's see which stated year and a half ago.
"Iceland is not experiencing excessive risk to the solvency or liquidity as a result of the recent volatility in the financial and business cycles," said Moody's Investors Service in a note published today. The firm maintains the highest rating of Aaa to the island's north.
"Iceland is well positioned to deal with any potential problem in its financial resources that might emanate from a systemic problem in any sector of its economy," says the analyst. "Our rating of Aaa is compatible with such a scenario," he adds.
The key ....
So in conclusion, let's see what we have today means:
- The mortgage lending fell for the first time in 16 years
- UBS found some opportunities in Spain
- Santander will have to help Banif for their losses at Lehman
- The IMF said that Spanish banks should consider its entry into state capital, according to press
- The euro fell a minimum of two years against the dollar (-20% from peak) for possible rate cuts in Europe
- CPI-shut-the-anus-in-the-35-and-the-Euribor-down-to-4.html "> Experts believe that the CPI will close the year at 3.5% and the Euribor will drop to 4 %
- Apple and Yahoo forecasts tearing off 10% of its workforce
- Prepare to pay Heritage next year
Written by Carlos Lopez on Oct. 22, 2008 with 388 points.
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# 1, Solbes ruin zp
Today my nightstick 5.078
collapses the euro against the dollar and yen
good days