Holy shit!

Thank Thor that elecricity is free there. There's a chill in the air.

You can't be me, I'm taken

Damn it all.

Every Icelander I've met have been Good People.  They don't deserve this.

Hope the Nordic Council steps in rather than the IMF.

Och nu den svenska kocken bakar en Alaskan älg jägare. Bonk! Bonk! Bonk!

Iceland has just become insolvent because the Government can't afford to bail-out its banks.  Supermarket chains report not being able to raise foreign currency to import food.

Ireland has just guaranteed bank deposits to the tune of 400 Billion Euro - almost 3 times our annual output(GDP).  It is clear we couldn't honour those guarantees if they were all called in.

Has the Government just mortgaged our lives to bail-out the banks?  Is it time to stockpile food?

Vote McCain for war without gain

One of the most prominent and talented right wing talk show hosts in Boston Mass, Jay Sevrin has made his "escape" country of choice Iceland.  Jay is of course one of those "journalists" who skillfully contributes his own right wing views while dutifully ignoring the blacklisted topics of Murikan "media".

Here is an interesting article on the U.S. situation:
http://www.openleft.com/showDiary.do?diaryId=8876

His/her analysis is similar to the ones that talk about speculation - particularly short-selling - as the salient cause, but he/she takes it down the road toward discussion of solutions. In the end the author cannot quite get specific, but Cookist theory could supply the missing piece.

In any case I would like to read your take on the analysis - either in this thread or elsewhere.

paul spencer

Iceland has undergone a remarkable transformation in the past couple of decades, from an economy largely based on fishing to one of the richest in Europe, driven by its biggest three banks following deregulation of the banking system. The banks grew rapidly on borrowing and now have assets eight times Iceland's GDP. But the party has come to an end, with the krona losing more than half its value against the euro in the past 12 months, inflation running at 12%, and interest rates at 15.5%.

Iceland is just a beginning...we all are at very beginning right now.
There is no point to believe that we (anybody in west countries and even others) somehow will be speared. We will not. No matter how big or small our countries/industries are. During a great depression in 1929 the most industrially developed countries suffered the most. But those who are based on resources and agriculture folowed...We are all in the same boat guys.
Icelanders are just first to fall...next better prepare.
Is it time to stockpile food? Probably not yet. I assume it will be in a next 8 - 12 months. Watch on inflation (not official but one you experience with your wallet).When your actual money is worth less and less every month/day you'll know we are getting closer and closer...
Our (Serbian) situation was similar to this only by consequences. We couldn't believe what was happening and we asked our selves "is there the end to this" and how the hell it will get better. Suddenly they announced that from January 24 1994 our dinar will be stable (compared to foreign currency). On that same day I left Serbia for ever...and dinar suddenly became stable...with Milosevic still on the top and our foreign policy not changed...Suddenly supermarkets were fool on that same day and it was business as usual...Damn politicians, bankers and all those involved in string pulling ...

reuters.com: Russia to lend Iceland 4 bln euros -Iceland c.bank

REYKJAVIK, Oct 7 (Reuters) - Iceland's central bank said on Tuesday Russia had agreed to provide the country with loans of 4 billion euros ($5.4 billion).

The central bank said the loans were for 3-4 years on terms that would be 30-50 points above Libor rates.

Iceland's central bank fixes currency rate

REYJKAVIK, Iceland: The Central Bank of Iceland has fixed the exchange rate of the country's currency, the krona, to try to stablize the domestic economy.

In the long run, we're all dead. John Maynard Keynes

The Norwegian PM, Jens Stoltenberg called Iceland's PM tonight and said Iceland could borrow 500mill euros from Norway:

Stoltenberg ringte Island - Nyheter - Politikk - Aftenposten.no

Statsminister Jens Stoltenberg (Ap) snakket ved sekstiden tirsdag kveld med Islands statsminister Geir Haarde om landets store økonomiske problemer.

- Allerede i mai snakket vi om den krevende situasjonen på Island. I etterkant av dette ble den islandske og norske sentralbanken enige om at Norges Bank skulle stille en låneadgang på 500 millioner euro, forteller Stoltenberg.

From just Two weeks ago....(seems like a different planet)

Ten of the best ... savings accounts | Money | guardian.co.uk

1. Icesave's easy access cash Isa

The glory of the cash Isa is that it allows you to take all your returns free of income tax. If you leave your money in a standard savings account, the interest you earn will be taxed at 40% if you're a top rate taxpayer, or 20% if you're a basic rate taxpayer. Not so in a cash Isa. A top-rate taxpayer earning 6% in a cash Isa is getting the equivalent of 10% gross, while a basic rate taxpayer gets 7.69%. You can invest up to £3,600 a year, and many cash Isas allow you to transfer in previous Isa holdings to help you get a more competitive rate.

Life should consist in at least fifty percent pure waste of time, and the rest doing what you please.

Icelandic Supervisory Authority: Landsbanki Islands hf Nationalized

On 7 October 2008 the Financial Supervisory Authority, Iceland (FME) used powers granted by the Icelandic Parliament with reference to Article 100 of Act. No. 161/2002, as amended, to take control of Landsbanki Islands hf.

The FME has now decided to transfer a part of Landsbanki´s operations to a new bank that has been formed and is fully owned by the Icelandic Government. The decision ensures continued banking operations for Icelandic families and businesses.

The decision means, inter alia, that the new bank takes over all the bank´s deposits in Iceland, and also the bulk of the bank´s assets that relate to its Icelandic operations, such as loans and other claims.

Och nu den svenska kocken bakar en Alaskan älg jägare. Bonk! Bonk! Bonk!

Central Bank of Iceland

[Compiled quote from cited pages]

R&I RATING:(BBB-); Downgraded from (A+) Remains on the Rating Monitor with a view to downgrading.

R&I downgraded Iceland's Foreign Currency Issuer Rating to A+ on October 7, pointing out that the repayment risk of private debt could be transferred to the government once all commercial banks are nationalized. Now the concern has become a reality. Total assets of 3 largest banks exceeded more than 9 times of GDP at the end of 2007 and Iceland government has no other choice but to seek financial assistance from the third party to manage its massive current account deficit and stabilize exchange rates.

Fitch Downgrades Iceland to 'BBB-'/'A-'; Rating Watch Negative.

Fitch Ratings has today downgraded the Republic of Iceland's Long-term foreign and local currency Issuer Default ratings (IDR) to 'BBB-' (BBB minus) and 'A-' (A minus) respectively.

 The Short-term IDR is also downgraded to 'F3' from and the Country Ceiling to 'BBB-'. All Iceland's sovereign ratings remain on Rating watch Negative.

Och nu den svenska kocken bakar en Alaskan älg jägare. Bonk! Bonk! Bonk!