Bloomberg: Iceland Seeks Loan From Russia, Pegs Krona, Takes Over Bank (October 7)
Iceland sought a 4 billion-euro ($5.43 billion) loan from Russia, pegged the slumping krona to a basket of currencies and took control of its second-biggest bank to stem a collapse of the financial system.
The central bank said it pegged the koruna against a basket of currencies at a rate equivalent to 130 per euro. Still, traders at UBS stopped trading the currency after markets became illiquid, Kapadia said. According to Nordea Bank AB, the krona traded at 200 to the euro as of 11:39 a.m. in Reykjavik. That's 53 percent weaker than the peg implies.
And this is from Bloomberg??? A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
