Icelandic economy in freefall- Gisli?

[david uk]

"Iceland's government has drafted emergency legislation to try and salvage the country's banking system.

In a televised address to the nation, Prime Minister Geir Haarde said the legislation would help the island avoid national bankruptcy.

Iceland will also offer an unlimited guarantee for all bank customers' savings accounts.

The moves come after trading in six of Iceland's biggest banks and financial firms was temporarily halted.

Banks dominate Iceland's economy, leaving the island of just 300,000 people heavily exposed to the global credit squeeze.

....

"We were faced with the real possibility that the national economy would be sucked into the global banking swell and end in national bankruptcy," Mr Haarde said.


http://news.bbc.co.uk/1/hi/business/7655227.stm

Gisli, what's up?

[gisli]

I guess we are the first of many casulties in this global financial turmoil that surrounds us. Other then that we are dumbstruck with this new situation.

We face extreme danger. Unless there is immediate intervention on every front by all the major powers acting in concert, we risk a disintegration of global finance within days. Nobody will be spared, unless they own gold bars. http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/3141428/Germany-takes-hot-seat-as-Europe-falls-into-the-abyss.html

Ps Thanks for asking David, how are you doing????? Nice to see you around.

[Bat]

I thought gold would be a good thing to get into...it wouldn't amount to much in my case, lost a bundle more today before I could switch to Money Market...bah!...but a few shavings off an ingot might stave the wolf from the door a bit at a time.
Sorry, Gisli, I guess the small countries get hit the hardest. I'm hoping for the best outcome for all of us at this stage of the game.

[gisli]

Yes buy gold, that is what they are saying today....it seems to be the safest way at the moment and has been for a long time.

We woke up today just to hear that the second largest bank over here is......well bankrupt......I have almost all of my money in that bank.

What seems to have happened monday morning (yesterday) is that all lifelines open to the Icelandic banks were cut off, thus the goverment stepped in and they have been getting loans from whereever they can.

What is said is simple, stay calm, dont panic and talk to your children about the situation so they wont be depressed, there are a lot of negative news in the media and children hear and understand more then you think.......and lastly it is only a short term affair ....a four year recession at most:confused:

[Peppermint]

That's short term?! Wow, sorry to hear so many being hit hard by this economic crisis. I really hope my university will be okay. Though tuition might rise a lot. It would be sad if it went bankrupt, considering I only have one year left until I graduate.

So with the bank declaring bankruptcy, pretty much anyone who had their money there will never get that back? How do they intend to deal with the bank runs on other banks now, or do they have plans to help people who had money in banks out at all? I feel really behind on international news.

[marjan]

Well I´m not sure what to do. Way before all this madness started I opened a banksaving account at Icesave, just because of the high interest rate (5,25%) I can wire my money back to my Dutch bankaccount or let it be as it is. The last option is what the gouvernement is counting on we "little people" will do, assuring us they will give our money back if anything will go wrong. Duh .. hell broke lose last couple of weeks .. no doubt there´s something going wrong

[gisli]

Marjan, the goverment is saying the same here....I should tell you that Icesave is a part of Landsbanki....my bank.........gold is nice at the moment.

[Bat]

If the Aussie Bank, according to Wendy, is offering 8%, maybe that would be a good move, Marjan?
It all depends if the bank's assets are federally (government) insured, like our FDIC/FICA accounts are, up to a certain amount. Here it was $100,000, and I think it's been upped to $250,000 by a recent bill passed last week.

[Beth]

Does anyone else feel like the tsunami is approaching? I am generally a very positive person, but have been feeling for some time fear in my gut that is not coming from inside me. We have always lived pretty simply but I do not feel that even we are on high enough ground. I am scanning, but can't find that place. And when do you decide to go? How to have that "Big Picture" perspective in the everyday "pack-the-lunch, kids to school, work, pick up milk, homework, dishes, is a vacation now wise even if it is nearly free", routine that is real life?

I did hear the NPR segment about Iceland this evening and I felt much sadness.

I am deeply troubled about our current world situation...

[gisli]

From The Times
October 10, 2008

Cold shoulder for Iceland allows rival to court new ally

Bronwen Maddox: World Briefing

Declining to offer Iceland a quick €4 billion loan is one of the worst decisions the US and European countries have made in the financial turmoil. It is a false economy that will prove diplomatically expensive.

http://www.timesonline.co.uk/tol/comment/columnists/bronwen_maddox/article4916541.ece

[aabram]

Saw something about that on Last Night's BBC News. I shall keep my eyes open... or open them or ...something :o

[DaveM]

Gold and silver are traditionally fixed values--and have been for millenia. The investment potential is questionable (depends on when you buy and whether you hold onto it or "trade") but it will will never become valueless. During the Middle Ages an ounce of gold bought 250 loaves of bread. It actually buys a bit more than that today.

One could do far worse right now than to put some of your savings (for those who have them) into precious metals. One can find them at any coin dealer or pawn shop (or any number of sources online). Two rules of thumb: make sure you are taking physical possession of the metal as opposed to the offers made by some places to "hold" your purchases for you....scam artists, for the most part. And if anyone lets you buy gold or silver with a credit card, you're paying too much.

If all else fails, let's colonize Iceland--it'd be as good a place to locate Rudieland as any!

[gisli]

If all else fails, let's colonize Iceland--it'd be as good a place to locate Rudieland as any!

I second that DaveM but do bewere that we are no longer a friendly nation.....but terrorists....according to the British Goverment

"Gordon Brown capped a tumultuous week for the country by using anti-terrorism laws.......":eek: :cool:

http://www.guardian.co.uk/commentisfree/2008/oct/10/iceland-gordonbrown

[Beth]

Russian financial assistance? What on earth is the US and the EU thinking? Have we lost our minds? our memory?

[lucille]

If the Aussie Bank, according to Wendy, is offering 8%, maybe that would be a good move, Marjan?
It all depends if the bank's assets are federally (government) insured, like our FDIC/FICA accounts are, up to a certain amount. Here it was $100,000, and I think it's been upped to $250,000 by a recent bill passed last week.

As opposed to the States and some other countries, we still have a certain amount of regulation over the banks. Our four largest banks have a double A rating, and are in the top 20 of safe banks in the world. If you can get your money out Marjan, and I now doubt that you can, our top four banks are Westpac, NAB (National Australia Bank), ANZ (Australia and New Zealand Bank, and The Commonweath Bank. The term deposit has now dropped to 6% but depending on the size of the deposit, I am sure you can negotiate. I am happy to get forms or whatever, if anyone wants them.

[Bat]

Good Show, Wendy!

...as for the U.S. not lending Iceland money, I'm not sure we have any left to lend, so don't take it personally, Gisli. Besides, you and Kata are two of the nicest terrorists I've ever met!:D

[hoops]

I'm with bat...you too are awesome terrorists :D. and i don;t even know where we got the $700 billion to pass out to the rich boys in our own country...then AIG goes and messes with it and WE'RE GONNA DO IT AGAIN!
peace
hoops

[marjan]

News is out that we will get our money back from Iceland for the first 20 thousend and the rest up till 100 thousend by our own gouvernement. But it´s a strange construction though, our gouvernement will loan Iceland the money to pay us back our money.

[hoops]

marjan,
HUH???? :eek: :confused: :confused: :eek:
peace
hoops

[coffeegyrl]

I guess that's better than a kick in the butt...

[gisli]

News is out that we will get our money back from Iceland for the first 20 thousend and the rest up till 100 thousend by our own gouvernement. But it´s a strange construction though, our gouvernement will loan Iceland the money to pay us back our money.

I am speechless.......I just hope you get your money back.