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Old 13.10.2008, 17:07
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Re: How Safe is UBS

Hey Begga - you have all my understanding.
Back in 2003 when I went to Iceland (lovely lovely country BTW) invited by Kaupthing, we also met with the then governor of the Central bank. To say the least, the people active in foreign exchange or treasury where sort of baffled by the naivety that was put on display. We privately whispered that we didn't really trust the ISK, something I always reiterated to all those who were piling into the ISK bond market back then. High yields - high risk I would say... I just wonder where these people's bonds are nowadays

OTOH I must say that the bakav˛r (spl?) families and the banks where allowed to pursue extremely aggressive acquisitions here in mainland EU, mostly thanks to generous credit lines - which today we know were several times the overall GDP of your country. This is the world of finance-gone-mad, and in he case of Iceland it is all falling on the shoulders of the common people.

What the english have done is to use the "terrorism act" in order to be able to freeze Iceland assets - it is a maneuvre that any politician would do, facing 300'000 depositors who have (more or less momentarily) lost their savings. Of course both will find a way out of this - UK has no interest whatsoever to "bomb" Iceland, and then - what would it gain?
Things will find a way back to some form of "normality", even though it will be probably very different form the past. Chin up!

Kind regards,

Paul
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