View Full Version : Iceland should keep the money
English assassin
10-10-2008, 11:32
Iceland has long been a favourite thing of mine. So as you can imagine I am sorry to see talk of diplomatic rifts just because a few Icelandic banks have gone bust taking a billion or two of UK deposits with them.
Unlike the numpties who put their money in these banks, I've been to Iceland. There is daisy all in Iceland, apart from lava, ice, and fish. Their economy is about the size of my grocery budget. Quite obviously if their banks went under they would not have the resources to honour any deposit guarantees. Your money would have been safer on a 10: 1 shot in the 2.30 at Kempton Park. They would have to sell all their kidneys just to pay the interest and we don't want that. Caveat lender I say.
OK, its true that all the Icleanders seemed to be driving huge shiny 4X4s with no obvious way to have paid for them, and now it looks like we know how they were doing that, but so what. And sure, they've got an attitude, but I kind of like that.
There was a chap in the Guardian this week worrying because he had sold his business and put all his worldy assets into three bank accounts, two in Iceland and one in Nigeria. Now, come on. Does that honestly seem like a sensible thing to have done with the money you needed to live on? Should Icelanders have to eat moss to pay this idiot back?
I really hope they do not come into the EU. The first time around, they managed to hold on to independence for about 400 years. It would be a sad reflection if they only manage it for 60 or so this time. This would never have happened in Njal's day.
Really, its only a few billion. HM Treasury seem to be thinking in 50 billion tranches when it comes to bailing out our own banks. A few more is neither here nor there. I say let the Icelanders off.
I saw Iceland was up for sale on eBay. :mellow:
gaelic cowboy
10-10-2008, 11:51
Paper here says Icelands gonna get a loan from Putin to tide them over the crisis couple a billion here few billion there an everything is hunkydory.
Now everyone is annoyed of course cos Icelands a NATO member whose banking system may end up being funded by Russia.
Agree almost entirely --> it looks quite bad using anti-terror laws to restrict Icelandic companies... not too impressed by Gordon Brown over this one, he surely has more important things to do at the moment than argue with the Icelanders. (although i don't know the legalality or otherwise of the Icelandic government not allowing 300,000 UKers access to their accounts etc.)
not too fussed about the council money caught up in it, its excess money anyway and is likely to be only a fraction of the total spread around internationally
I am worried that the government will cover all deposits in the Icelandic banks, --> i can just about understand it for British banks, but not really elsewhere...
:2thumbsup:
Tribesman
10-10-2008, 12:10
not too fussed about the council money caught up in it, its excess money anyway
Will you still be saying that when your council increases its council tax to make up for the lost money ?
I told you Putin is a nice guy!
I know I know, it's all just part of his plan to buy Iceland, then the arctic and then THE WORLD!
rory_20_uk
10-10-2008, 12:20
They should pay - pure and simple. This is what happens when the heads of the banks and the people supposedly undertaking oversight are best mates.
Yes, the economy is small. Having a banking sector with debts 10 times GDP surely is madness.
The government is talking about masses of money for the banks. This money generally is being lent over short spaces of time, so is oil for the machine, not the petrol. Money to Iceland would be permanent, and not I'm not happy to pay for that.
The councils followed internationally accepted advice. Iceland banks were viewed as secure. How a council is supposed to know otherwise would mean that the council would be ahead of the world markets. The Treasury should have forbidded offshoring the money, but hindsight is 20:20.
I disagree with the Treasury backing all monies held in these overseas accounts, as I feel that the advantage of the higher rates is in part that the money is less safe.
They were all too happy with a russian mobst- I mean established gentleman upping their national product
InsaneApache
10-10-2008, 13:28
not too fussed about the council money caught up in it, its excess money anyway
Just to add on what Tribes said, you havn't thought this through.
It looks as though the local authorities will withdraw all the monies deposited in this type of account and move it to government bonds. If they do this it will most probably start a run on the banks. So that's half a trillion (:sweatdrop:) wasted on the rescue.
Also it isn't excess monies but rather a way for the local authorities to garner some extar income from, what used to be, good rates of return.
Coupled with the expectation that the volutary sector will do the same, I have a bad feeling in my water about this. Time will tell.
Banquo's Ghost
10-10-2008, 14:17
The real question is why the credit rating agencies had these banks at AAA until ten days ago. Anyone who can count to twenty without the removal of their socks could see that Icelandic policy would lead to disaster. The British Channel 4 News even reported on the matter back in March.
The Icelandic government was reneging on guarantees to depositors. If they didn't want to end up with a moss diet, they shouldn't have borrowed on the never-never.
i hope our actions don't push them follishly into the EU.
English assassin
10-10-2008, 15:39
The Icelandic government was reneging on guarantees to depositors. If they didn't want to end up with a moss diet, they shouldn't have borrowed on the never-never.
Oh, come on, where is your sense of fun? If you lived on a volcano in the North Atlantic and Kent County Council came and gave you £50M, you'd go a bit crazy too. Besides, they probably didn't realise it was a lot of money, you can easily blow £50 million on a round of drinks in Rekyjavik.
I say we just look on it as a tax on people who were not paying attention in geography class and move on. Rory , a mackerel could see that lending money to Iceland was a bad idea, unless you want to get paid back with fish.
http://www.thedailymash.co.uk/news/war/councils-invested-%a31bn-in-tiny-volcano-surrounded-by-fish-200810101314/
LOCAL authorities across the UK were yesterday stunned to discover that Iceland is nothing more than a volcano surrounded by two million haddock.
As the volcano's banks refused to pay out, councils said they were convinced Iceland was a small, landlocked country next to Belgium with a long history of expert financial management
Besides, 1000 years ago they would have come over and just taken the money. This isn't a crisis, this is progress.
Philippus Flavius Homovallumus
10-10-2008, 17:21
Two things strike me here.
1. If we don't get the money back it's bad for us.
2. This is not a time to be nice.
So I think we should get the money back.
Louis VI the Fat
10-10-2008, 18:15
Two things strike Louis here:
1 - I sure as hell won't ever won't ever set foot on that lump of perennially frozen volcanic ash.
2 - Their chicks are all hot and blond.
So whatever it takes to keep them coming over here must be done. I say keep sending them money and keep 'em coming. :smitten:
Good to see you back, EA! Been missing you!
1 - I sure as hell won't ever won't go to that lump of perenial frozen volcanic ash.
But the exchange rates are looking quite favorable! ~D
... councils said they were convinced Iceland was a small, landlocked country next to Belgium with a long history of expert financial management
You got to be kidding me ... :applause:
It appears that the volcanoes have boiled all their true Viking blood away; I say it is time they once again come under Norwegian sovereignty. :viking:
Who is buying Iceland?
Option nr 1. USA
Option nr 2. UK
Option nr 3. RUS
Option nr 4. NOR
Option nr 5. DEN
Who is buying Iceland?
Option nr 1. USA
Option nr 2. UK
Option nr 3. RUS
Option nr 4. NOR
Option nr 5. DEN
How much for the hot blondes Louis mentioned? Russia can have the haddock.
InsaneApache
10-10-2008, 22:06
How much for the hot blondes Louis mentioned? Russia can have the haddock cod.
There, fixed it for you. :laugh4:
Tribesman
10-10-2008, 22:32
Besides, they probably didn't realise it was a lot of money, you can easily blow £50 million on a round of drinks in Rekyjavik.
:2thumbsup:
Easily , thogh of course it has to be 50 million krona as the banks won't give you pounds:beam:
Tribesman
10-10-2008, 22:39
2. This is not a time to be nice
Yeah but them Icelandic trawlers might ram your navy and there where would you be next time you have to substitute sailors for firemen:idea2:
Then again perhaps the mighty Icelandic trawlers might be harbourbound because they can't afford marine diesel which means Katona can't be advertising crap and is looking for a new job and on top of that Harry Ramsden goes into meltdown which = riots across t'north
Seamus Fermanagh
10-10-2008, 23:05
As long as they can find something to ferment, and fuel enough to distill it, the locals will get by.
Kadagar_AV
10-11-2008, 00:34
You got to be kidding me ... :applause:
I am scared this was a genuine question...
Louis VI the Fat
10-11-2008, 00:55
You got to be kidding me ... I am scared this was a genuine question...Come on, lads, don't go all German on us. It was meant humourously, the lot of it.
Speaking of which, this is another classic joke:
'Besides, 1000 years ago they would have come over and just taken the money. This isn't a crisis, this is progress.'
Kadagar_AV
10-11-2008, 01:29
what a way to ruin a joke... You should have linked to some wikipedia page about comedy while at it.
Louis VI the Fat
10-11-2008, 01:37
I shall now go off to study Swedish humour so I won't ruin your jokes anymore. ~;)
HoreTore
10-11-2008, 06:39
Paper here says Icelands gonna get a loan from Putin to tide them over the crisis couple a billion here few billion there an everything is hunkydory.
Now everyone is annoyed of course cos Icelands a NATO member whose banking system may end up being funded by Russia.
They have a 4 billion guarantee from the norwegian bank, so I doubt it'll come to that...
The loan you're talking about is a loan they made years ago, and they're just going to renegotiate, as scheduled.
I shall now go off to study Swedish humour so I won't ruin your jokes anymore. ~;)
What's to study? The biggest joke is that they're still around ~;)
I just read an article where it states that Iceland must forgo their currency.
They can either join EU and adopt the Euro or more popularly import NOK.
The current currency, the Icelandic krone, has been troubled with loating currency and inflation targets since 2001 and with the distrust in the Icelandic central bank they have serious problems.
The leading economists want the Norwegian krone as Iceland's currency.
This practically means that the Icelandic central bank would be subject to the Norwegian central bank and that other Norwegian control authorities must be adopted. In reality a union between two peoples that were one 1200 years ago.
Norwegian imperialism at work...
Oleander Ardens
10-15-2008, 12:50
Given that the IK/€ exchange rate has gone from 100 to 300 in a matter of months I think now about visiting Iceland. Who would have thought to get there and live so cheaply :egypt:
KukriKhan
10-15-2008, 14:09
They can either join EU and adopt the Euro or more popularly import NOK.
I thought I heard they were talking to Putin? Is it a worry if they convert to
https://jimcee.homestead.com/1000rubles.jpg
Sjakihata
10-15-2008, 14:12
Now everyone is annoyed of course cos Icelands a NATO member whose banking system may end up being funded by Russia.
Which is why the Scandinavian countries has come together with a loan offer to Iceland, to keep the Russians out of their financial sector. Of course it is up to Iceland who they will loan from and quite possibly it will be from a variety of partners, including Mother Russia.
Kralizec
10-15-2008, 17:52
My home town apparently withdrew all their money from Iceland just in time :2thumbsup: The province has effectively lost 30 million though, so did a lot of other Dutch municipalities and provinces.
Tribesman
10-15-2008, 19:37
Given that the IK/€ exchange rate has gone from 100 to 300 in a matter of months I think now about visiting Iceland.
Its a clever ploy by the conservative libertarians similar to what some on this forum use to defend their own "views" on economics , allowing the currency to slide is a great boost for exports and tourism :yes:
With the currency sliding so far Icelands banana plantations can really take on the third world competition and win with exports .:2thumbsup:
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