lceland: The Collapse of a Country

  • dawes
  • 24/10/08 31/05/09
  • unspecified
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Posted: Tue, 10/02/2009 - 18:05

http://risk.lse.ac.uk/rr/files/e.pdf

Iceland experienced the deepest and most rapid financial crisis recorded in peacetime
history when its three major banks all collapsed in the same week in October 2008
triggering a systemic crisis, the first in any advanced economy. Its collapse is related
to the global liquidity crisis, but a unique set of circumstances suggests that the
recession in Iceland will be much deeper and prolonged than the recession in most
other European countries.
Many of the events contributing to the crisis can be explained by the historical
evolution of the Icelandic economy and its institutions. Traditionally, the Icelandic
economy was more regulated and politicized than economies in most Western
countries. Economic management was more based on discretion than rules, with tight
connections between private sector firms and political parties.

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Iceland's deepest and rapid loss.

  • conned
  • 13/10/08 n/a (free)
  • a depositor
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  • Sun, 26/07/2009 - 07:31

Funny that, Iceland experiencing the deepest and most rapid financial loss, so did I.


Iceland and me

  • Julienne
  • 16/10/08 31/08/09
  • a depositor
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  • Sun, 26/07/2009 - 11:18

Yep - because Iceland collapsed - so did I --- or the Icelandic bank in the IOM --
We all know it happened - the point is WHAT are they going to do about the chaos that followed their collpase.


Alistair Darling

  • ItsTheft
  • 10/10/08 31/05/09
  • a depositor
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  • Thu, 30/07/2009 - 11:41

We are in the mess because of one person. Alistair Darling. He lied when he committed financial genocide.


I agree with you. Iceland

  • colinalvin63
  • 28/10/08 n/a (free)
  • a depositor
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  • Fri, 31/07/2009 - 17:39

I agree with you. Iceland might have been struggling a little prior to Oct 2008, but it was Alistair Darling that finished them off, supposedly to protect ordinary British savers in KSFUK, the vast majority of whom probably didn't have £50K in the bank, so would have been protected by the guarantee.


Understatement

  • dawes
  • 24/10/08 31/05/09
  • unspecified
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  • Mon, 03/08/2009 - 12:34

"Iceland might have been struggling a little prior to Oct 2008"

If you mean, bankrupt, then yes, they were struggling.

In June 2008 they projected that 75% of their loan book would go bad. Not only did they have no access to short term funds to pay their commitments, but they lent money to the banks friends who made lousy investment and were in some cases without collateral.