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Old 13.10.2008, 21:40
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Begga Begga is offline
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Re: How Safe is UBS

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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 bakavòr (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,

I think no one actually understand how the governor of the Central bank is chosen... Davíð Oddsson, the current governor took this place in 2005, but he had before that been major of Reykjavík, and prime minister. His political history is from 1982 and every year he has got 1. place as the most popular politician and also 1. place as the most unpopular politician. Now it safe to say, he will only get the 1. place as the most unpopular…

I don’t believe that any politician would go for the terrorism act, it seems more like a desperate vote catching… Some foreigners have declared it seemed like Brown wanted his own Falklands war, among those how said this was a formal assistant of Margaret Thatcher. I tried to find this article again, but of course I didn’t find it now.

Question: Would Brown have used such dramatic words and act with the results that it caused against a country that could possibly stand a chance against the UK? Like a country as Germany? I seriously don’t think so!

Reminder: Darling claimed he “understood” our minister Árni Mathiesen that Iceland didn’t want to pay and therefore Darling and Brown decided to use the terrorist laws for possessions of Icelandic bank. Árni however told exactly the opposite, that we would pay, but needed to negotiate about how we could do it. This is a very expensive mis-understandment! I would really want to hear this conversation on a tape. And in every media, Government of Iceland always said we would pay!! It was thought that by selling the possessions of Landsbanki, we would get almost enough money to give the British bank savers their money back. So WHY was this action needed???

Some resent articles worth reading:
Landsbanki assets alone nearly enough to cover Icesave

Who will stand up for Iceland?

Kicking Iceland while it's down

Declining to offer Iceland a quick €4 billion loan is one of the worst decisions the US and European countries have made in the financial turmoil

Not really relative, but I bet not many know that Iceland and UK actually have had a "war" before - and Iceland won
Don't mess with Iceland
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