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Um, if someone tried to prop up the Icelandic Krona I'm sure a lot of wealthy Icelanders would take their money to the Eurozone.

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
by Migeru (migeru at eurotrib dot com) on Tue Oct 7th, 2008 at 08:35:35 AM EST
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by ThatBritGuy (thatbritguy (at) googlemail.com) on Tue Oct 7th, 2008 at 08:57:25 AM EST
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But how much safer is a Eurozone bank than an Icelandic one?

Any idiot can face a crisis - it's day to day living that wears you out.
by ceebs (ceebs (at) eurotrib (dot) com) on Tue Oct 7th, 2008 at 10:11:45 AM EST
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What matters is the exchange rate risk...

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
by Migeru (migeru at eurotrib dot com) on Tue Oct 7th, 2008 at 10:25:50 AM EST
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Oh, shit, here's the window of opportunity for the fleet-footed wealthy Icelanders...

Bloomberg: Iceland Seeks Loan From Russia, Pegs Currency (October 7)

The central bank said it pegged the krona against a basket of currencies at a rate equivalent to 130 per euro. 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.


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
by Migeru (migeru at eurotrib dot com) on Tue Oct 7th, 2008 at 10:30:28 AM EST
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