Go Back   English Forum Switzerland > Living in Switzerland > Swiss politics/news  
Reply
 
Thread Tools Display Modes
  #401  
Old 13.10.2008, 09:31
gbn's Avatar
gbn gbn is offline
Forum Legend
 
Join Date: Dec 2005
Location: Zuri Oberland
Posts: 2,747
Groaned at 104 Times in 71 Posts
Thanked 2,398 Times in 1,124 Posts
gbn has a reputation beyond reputegbn has a reputation beyond reputegbn has a reputation beyond reputegbn has a reputation beyond reputegbn has a reputation beyond repute
Re: How Safe is UBS

Quote:
View Post
Unfortunately for them, CS (or I should specify CSAM) were *very active* in placing Collateralized Debt Obligations (CDOs) all around. According to what they were saying at one-to-one meetings at the time, most of the CDO issues were place internally in managed portfolios. Apparently, acct execs were "clamoring" for the stuff and so if we (i.e. my ex bank) had any interest in the stuff we would have had to expect to receive only a fraction of our overall interest.
Where is that paper today? Still in the clients' portfolios ? Did they just buy it back from clients even maybe even only 6-8 weeks ago and are now carrying it (at a LOSS) on their books? CS might yet be that bank that cripples Switzerland...who knows... :-/

Paul

p.s.: 100th post... pat on my shoulder. I would rather have had something positive to comment, instead of this. Sign'o'the times
What does the Shoracle Mk 2 say?
Reply With Quote
This user would like to thank gbn for this useful post:
  #402  
Old 13.10.2008, 11:39
resident
 
Posts: n/a
Re: How Safe is UBS

Quote:
View Post
I'd give shorter odds that an asteroid will hit the earth. ... The rest of us would be eating each other to stay alive and praying for that asteroid to hit.
99942 Apophis (2004 MN4)
Earth Impact Risk Summary

http://neo.jpl.nasa.gov/risk/a99942.html
Reply With Quote
  #403  
Old 13.10.2008, 12:00
Guest
 
Posts: n/a
Re: How Safe is UBS

Quote:
View Post
Recently read an analysis by a German economics professor who assumed that in a worst case scenario the US could choose to default on all treasuries held by foreigners. In the end, the rest of the world could not do much except for confiscating assets held by US companies or declaring war.

I'm looking at this statement from Bush and can imagine him implying how non-cooperation can be construed as an aggressive act against national interests:

"In an interconnected world, no nation will gain by driving down the fortunes of another. We are in this together. We will come through it together," Bush said, flanked by representatives from G-7 nations, the IMF, World Bank and European Union. "There have been moments of crisis in the past when powerful nations turned their energies against each other or sought to wall themselves off from the world. This time is different."

Also, what got us out of the great depression if not war?
Reply With Quote
  #404  
Old 13.10.2008, 12:27
ManBearPig's Avatar
Member
 
Join Date: Jun 2008
Location: Zürich
Posts: 141
Groaned at 0 Times in 0 Posts
Thanked 107 Times in 55 Posts
ManBearPig has made some interesting contributions
Re: How Safe is UBS

ZKB 12:25

WährungWechselkursDiff. % USD/CHF 1.1333 1.51% EUR/CHF 1.5394 1.61% GBP/CHF 1.9482 2.70% JPY/CHF 1.1266 0.01% EUR/USD 1.3587 0.10%
Reply With Quote
  #405  
Old 13.10.2008, 16:04
Begga's Avatar
RIP
 
Join Date: Oct 2007
Location: Basel [Quality not Quantity]
Posts: 2,280
Groaned at 31 Times in 22 Posts
Thanked 2,879 Times in 1,067 Posts
Begga has a reputation beyond reputeBegga has a reputation beyond reputeBegga has a reputation beyond reputeBegga has a reputation beyond reputeBegga has a reputation beyond reputeBegga has a reputation beyond repute
Re: How Safe is UBS

Hello.
I see the discussion of my country has gotten it’s attention here as well…
I am from Iceland and have had very little sleep the last week, but this I want to tell you:

The government of Iceland has said from beginning of these crises that we would do our very best so that people of England, Holland and Norway how had their money in Icelandic banks would have their savings back. We have already made peaceful agreement to Norway and Holland about how the people WILL GET THEIR MONEY BACK and are still negotiate to the government of the UK

For some extraordinary reason, Gordon Brown misunderstood the Icelandic politics very extremely and mad statements in the press that we would not keep our honor to the people and were transferring Britain’s money to Iceland.
Due to our “dishonesty” he used the laws who were made after 9/11 against terrorist to freeze all the possessions of Kaupthing bank in the UK, leading to the fall of Iceland’s biggest firm and put Iceland on far worse level that it already was, causeing our last hope to save our self gone.

Terrorist!! Can you believe this??? I am not angry, I am FURIOUS!
I am no god damn terrorist and I cannot understand the justification on using terrorist law against this tiny country. In fact, I think Brown is doing more publicity style with this, he knows how week possession we have, we have no army, we cannot do much to defend our self (we thought it was not needed… who would want to attack Iceland, for God sake??).

So my country is burning, and the people are bleeding.
I think no one here can possible understand the situation at home. People are terrified. It is truly enough that many people have lost their lifesaving, their jobs and also AHV had spent billions in stocks in the banks witch is all gone now. It took decades to built the AHV up as it is today (sorry, as it was 2 weeks ago), and it is destroyed now and people are afraid of getting old.
Mental institutions are FULL, suicidal rate is going up, people are sad, seriously depressed and angry.

Prime minister and head of the Central bank needed to hire armed bodyguards for their protection, since the public is absolutely furious. Can you imagine the chaos? Normally, the police are not even allowed to carry firearm!!

Of course I am not taking the blame of the government or the controller of the Central bank – not at all! The head of the Central bank should be expelled NOW! At least the government is trying night and day to find a solution, but they have made very serious mistake that will not been forgotten…

But it is high discussion now, and I fully support it, that Kaupthing bank and the government of Iceland should sue the government of UK for using the terrorist law so freely, putting a whole country on its knees. Some layers in the UK already say we could get billions of pounds in benefit for the damage they caused us.

Regarding to the Russian loan, I am really not comfterable with it. Iceland is in NATO among USA, UK and Norway, and I am sure the Russians see political interest in this and I am not interested to get a Russian base to us… In fact, others are shaky about it, and Norway have discussion about that it would be in their interest to provide us loan so we wouldn’t be “owned” by the Russians. “International Currency-something” (sorry, the English word popped out of my head) has also offered its help and it is likely we will accept it.

So that’s enough for today from me…
But, I read an “article” from a 17-year old UKer on the web witch was full of racism toward us, with the headline “Give us the money back”.
Please understand the huge suffering of our people. It is not our attention to steal anything, and the public have never seen those billions that some very few bankers had between their hands and lost, and WE – the public have to pay for it, and our children and our grandchildren!!

To make it short... I will not be moving back home for the next ? years...
Reply With Quote
The following 2 users would like to thank Begga for this useful post:
  #406  
Old 13.10.2008, 17:07
Uncle GroOve's Avatar
Forum Veteran
 
Join Date: Feb 2008
Location: Mendrisio
Posts: 1,082
Groaned at 7 Times in 5 Posts
Thanked 733 Times in 382 Posts
Uncle GroOve has a reputation beyond reputeUncle GroOve has a reputation beyond reputeUncle GroOve has a reputation beyond reputeUncle GroOve has a reputation beyond repute
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 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,

Paul
Reply With Quote
  #407  
Old 13.10.2008, 17:46
JVC
 
Posts: n/a
Re: How Safe is UBS

Quote:
View Post
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.
Uncle GroOve,

I strongly disagree that anti-terrorism powers should be used for anything other than counteracting terrorism, and this use by the UK was a complete abuse of those powers.

According to Channel 4 news last night, although the UK govt. claimed they were taking steps to seize the UK assets of Kaupthing, they didn't actually do so, and (again according to Channel 4 news), Downing Street issued the following statement on Saturday evening:

Quote:
To clarify the situdation regarding Icelandic companies, I am confirming that it is only Landsbanki’s assets that have been frozen in the UK...

No other Icelandic company’s assets have been frozen.
The earlier Treasury statement that the Kaupthing UK subsidiary's assets had been seized was apparently what actually caused Kaupthing to fold.

It seems to me that the UK may have actually caused last week's problems for Iceland. Still, I very much doubt that Gordon Brown gives a toss, since it has given him the excuse to get control of the British banking system via nationalization.
Reply With Quote
  #408  
Old 13.10.2008, 19:31
Forum Legend
 
Join Date: Jan 2007
Location: Geneva
Posts: 5,521
Groaned at 123 Times in 108 Posts
Thanked 3,297 Times in 1,737 Posts
Shorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond repute
Re: How Safe is UBS

Quote:
View Post
The earlier Treasury statement that the Kaupthing UK subsidiary's assets had been seized was apparently what actually caused Kaupthing to fold.
What caused Kaupthing to fold was its financing structure and the implied leverage.
Reply With Quote
  #409  
Old 13.10.2008, 20:02
JVC
 
Posts: n/a
Re: How Safe is UBS

Quote:
View Post
What caused Kaupthing to fold was its financing structure and the implied leverage.
In which case, the UK government didn't need to resort to anti-terrorism powers. That is what I find disturbing.

But hang on a moment. I have memories of BCCI going bust in 1991, and if I remember correctly, a lot of local government authorities got burnt by that one. Same pattern, lots of folks got burnt, but we expected our local authorities to be prudent with their millions of public money. What happened that time
Reply With Quote
  #410  
Old 13.10.2008, 20:15
Uncle GroOve's Avatar
Forum Veteran
 
Join Date: Feb 2008
Location: Mendrisio
Posts: 1,082
Groaned at 7 Times in 5 Posts
Thanked 733 Times in 382 Posts
Uncle GroOve has a reputation beyond reputeUncle GroOve has a reputation beyond reputeUncle GroOve has a reputation beyond reputeUncle GroOve has a reputation beyond repute
Re: How Safe is UBS

Quote:
View Post
Uncle GroOve,

I strongly disagree that anti-terrorism powers should be used for anything other than counteracting terrorism, and this use by the UK was a complete abuse of those powers.
....
I didn't say "I agree" or "it is the most ethical solution", didn't I?

Any politician worth this name, nowadays, would most probably try to find whatever kind of justification to appease the anger of a 300 thousand strong crowd :-/

Paul
Reply With Quote
  #411  
Old 13.10.2008, 21:40
Begga's Avatar
RIP
 
Join Date: Oct 2007
Location: Basel [Quality not Quantity]
Posts: 2,280
Groaned at 31 Times in 22 Posts
Thanked 2,879 Times in 1,067 Posts
Begga has a reputation beyond reputeBegga has a reputation beyond reputeBegga has a reputation beyond reputeBegga has a reputation beyond reputeBegga has a reputation beyond reputeBegga has a reputation beyond repute
Re: How Safe is UBS

Quote:
View Post
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,

Paul
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
Reply With Quote
  #412  
Old 13.10.2008, 21:57
Guest
 
Posts: n/a
Re: How Safe is UBS

It looks like Gordon Brown went into war mode and battened down the hatches. He did a great job of demonstrating resolution and courageously taking action. But what exactly happened to Iceland? It appeared Iceland lost its fortitude and went limp. Did it really consider a russian base for russian money? Isn't this really a tit for tat for that failure?
Reply With Quote
  #413  
Old 13.10.2008, 23:02
Begga's Avatar
RIP
 
Join Date: Oct 2007
Location: Basel [Quality not Quantity]
Posts: 2,280
Groaned at 31 Times in 22 Posts
Thanked 2,879 Times in 1,067 Posts
Begga has a reputation beyond reputeBegga has a reputation beyond reputeBegga has a reputation beyond reputeBegga has a reputation beyond reputeBegga has a reputation beyond reputeBegga has a reputation beyond repute
Re: How Safe is UBS

Quote:
View Post
It looks like Gordon Brown went into war mode and battened down the hatches. He did a great job of demonstrating resolution and courageously taking action. But what exactly happened to Iceland? It appeared Iceland lost its fortitude and went limp. Did it really consider a russian base for russian money? Isn't this really a tit for tat for that failure?
No the Russian didn't ask for a base for the lown. But many fear that they want "nothing" for this loan... I quote one Norwegian from another forum...
Quote:
We have had to send ****loads of money to Russia for a long time.The reason for this is that they claimed that they was too poor to clean up the mess they made at the Kola peninsula, toxic waste, pollution and all kind of **** that had to be removed, and Norway payed for it.
Now how come a country that is too poor to clean up their mess and needed financial aid from Norway in order to do it suddenly are rich enough to give huge loans to Iceland now ??

I would not trust the russians any more than i would trust a hungry tiger not to eat me.They have an agenda with this , be sure of that.
What happened was change reaction and the bad side of globalization...
-Banks growing to fast and not enough controlled by government
-Richer gets richer, public ... stay public...
-Bank crises, one of the 3 biggest banks in Iceland, Glitnir, got in trouble, government said they would buy 75% of the bank
-With these new, loners of Glitnir got afraid, stopped money flow to Glitnir -> Glitnir goes bankrupt
-Basicly everythings goes nuts... Landsbanki also gets bankrupt and Kaupthing is struggeling but get help from the government to survive
-Brown/Darling go crazy thowards Iceland and Icesave
-Kaupthing gets bankrupt
-Icelanders are broke...

Last edited by Begga; 13.10.2008 at 23:23.
Reply With Quote
This user would like to thank Begga for this useful post:
  #414  
Old 13.10.2008, 23:35
Newbie 1st class
 
Join Date: Aug 2008
Location: Yverdon-les-Bains
Posts: 22
Groaned at 0 Times in 0 Posts
Thanked 1 Time in 1 Post
jjoensuu has no particular reputation at present
Re: How Safe is UBS

Quote:
View Post
-Icelanders are broke...
Sad but interesting, that situation in Iceland. From some of the articles I read it seems that some Icelanders are getting burned because they have a mortgage denominated in a foreign currency, and others because of the inflation rate there.

On the other hand there may not have been as much 'house flipping' in Iceland as in the US...which means that people perhaps mostly bought their houses for long term and are not as concerned about a reduction in value as people in the 'States seem to be(?).

Does it look like many people could lose their homes in Iceland (like what is happening in the US)?
Reply With Quote
  #415  
Old 14.10.2008, 08:16
Uncle GroOve's Avatar
Forum Veteran
 
Join Date: Feb 2008
Location: Mendrisio
Posts: 1,082
Groaned at 7 Times in 5 Posts
Thanked 733 Times in 382 Posts
Uncle GroOve has a reputation beyond reputeUncle GroOve has a reputation beyond reputeUncle GroOve has a reputation beyond reputeUncle GroOve has a reputation beyond repute
Re: How Safe is UBS

Quote:
View Post
...
What happened was change reaction and the bad side of globalization...
-Banks growing to fast and not enough controlled by government
-Richer gets richer, public ... stay public...
-Bank crises, one of the 3 biggest banks in Iceland, Glitnir, got in trouble, government said they would buy 75% of the bank
-With these new, loners of Glitnir got afraid, stopped money flow to Glitnir -> Glitnir goes bankrupt
-Basicly everythings goes nuts... Landsbanki also gets bankrupt and Kaupthing is struggeling but get help from the government to survive
-Brown/Darling go crazy thowards Iceland and Icesave
-Kaupthing gets bankrupt
-Icelanders are broke...
Begga - unfortunately the Iceland conundrum was well known. Last may, William Buiter, a well known economist who also teaches at the London School of Economics, was indicating Iceland as an example of a central bank that would go bust (I will leave the technicalities aside). That's 5 months before the facts, and I don't think he just woke up to the idea the very day he wrote his piece (I will have to look for a link for it - it's called "Can Central Banks go Broke?"). Which means that the issue w/ the "Icebanks" and the ISK, etc was indeed well known beforehand.

But this begs another question: since so many economists and specialists who are close to the ear of those-in-power *knew* that this was a very clear danger, why wasn't anything done beforehand? Why did they allow the problem to escalate to the point where the clean-up could possibly be more expensive than a preventive solution?... :-/

Paul
Reply With Quote
  #416  
Old 14.10.2008, 09:06
Newbie 1st class
 
Join Date: Aug 2008
Location: Yverdon-les-Bains
Posts: 22
Groaned at 0 Times in 0 Posts
Thanked 1 Time in 1 Post
jjoensuu has no particular reputation at present
Re: How Safe is UBS

Quote:
View Post
Which means that the issue w/ the "Icebanks" and the ISK, etc was indeed well known beforehand.
In fact I do remember the situation of Iceland being discussed on Nouriel Roubini's (a respected economist) website some months ago such as here:
http://www.rgemonitor.com/econo-moni...a_rural_strike
Reply With Quote
  #417  
Old 14.10.2008, 09:27
Forum Legend
 
Join Date: Jan 2007
Location: Geneva
Posts: 5,521
Groaned at 123 Times in 108 Posts
Thanked 3,297 Times in 1,737 Posts
Shorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond repute
Re: How Safe is UBS

Quote:
View Post
No the Russian didn't ask for a base for the lown. But many fear that they want "nothing" for this loan... I quote one Norwegian from another forum...

What happened was change reaction and the bad side of globalization...
-Banks growing to fast and not enough controlled by government
-Richer gets richer, public ... stay public...
-Bank crises, one of the 3 biggest banks in Iceland, Glitnir, got in trouble, government said they would buy 75% of the bank
-With these new, loners of Glitnir got afraid, stopped money flow to Glitnir -> Glitnir goes bankrupt
-Basicly everythings goes nuts... Landsbanki also gets bankrupt and Kaupthing is struggeling but get help from the government to survive
-Brown/Darling go crazy thowards Iceland and Icesave
-Kaupthing gets bankrupt
-Icelanders are broke...
Let me correct your timeline there for a minute:


1) loaners to Glitnir got afraid, stopped money flow to Glitnir (but not only to Glitnir, this is not a personal matter as you seem to make it).

2) Glitnir, got in trouble, government said they would buy 75% of the bank.

3) "Brown/Darling go crazy thowards Iceland and Icesave" is irrelevant - Kaupthing would have gone broke all the same.
Reply With Quote
  #418  
Old 14.10.2008, 09:43
Goldtop's Avatar
Forum Legend
 
Join Date: Feb 2008
Location: Zurich
Posts: 2,847
Groaned at 11 Times in 11 Posts
Thanked 905 Times in 625 Posts
Goldtop has a reputation beyond reputeGoldtop has a reputation beyond reputeGoldtop has a reputation beyond reputeGoldtop has a reputation beyond repute
Re: How Safe is UBS

Quote:
View Post
... Does it look like many people could lose their homes in Iceland (like what is happening in the US)?
The Icelanders could face galloping inflation. The ISK currency had devalued substantially. Hence all imported products and services -- guess Iceland imports a lot -- would become very expensive. But wages probably would not rise.

This combination is known as "stagflation" and means tough times ahead. The US is less vulnerable because it is a larger economy that is less dependent on imports.
Reply With Quote
  #419  
Old 14.10.2008, 10:15
Uncle GroOve's Avatar
Forum Veteran
 
Join Date: Feb 2008
Location: Mendrisio
Posts: 1,082
Groaned at 7 Times in 5 Posts
Thanked 733 Times in 382 Posts
Uncle GroOve has a reputation beyond reputeUncle GroOve has a reputation beyond reputeUncle GroOve has a reputation beyond reputeUncle GroOve has a reputation beyond repute
Re: How Safe is UBS

Quote:
View Post
In fact I do remember the situation of Iceland being discussed on Nouriel Roubini's (a respected economist) website some months ago such as here:
http://www.rgemonitor.com/econo-moni...a_rural_strike
Yup - Roubini is Da Man.
And sadly, his opinions too, went totally unheeded.
Roubini for president!! (or at least at the head of the Fed, pleeze...)

Paul
Reply With Quote
  #420  
Old 14.10.2008, 11:22
Begga's Avatar
RIP
 
Join Date: Oct 2007
Location: Basel [Quality not Quantity]
Posts: 2,280
Groaned at 31 Times in 22 Posts
Thanked 2,879 Times in 1,067 Posts
Begga has a reputation beyond reputeBegga has a reputation beyond reputeBegga has a reputation beyond reputeBegga has a reputation beyond reputeBegga has a reputation beyond reputeBegga has a reputation beyond repute
Re: How Safe is UBS

Quote:
View Post
Begga - unfortunately the Iceland conundrum was well known. Last may, William Buiter, a well known economist who also teaches at the London School of Economics, was indicating Iceland as an example of a central bank that would go bust (I will leave the technicalities aside). That's 5 months before the facts, and I don't think he just woke up to the idea the very day he wrote his piece (I will have to look for a link for it - it's called "Can Central Banks go Broke?"). Which means that the issue w/ the "Icebanks" and the ISK, etc was indeed well known beforehand.

But this begs another question: since so many economists and specialists who are close to the ear of those-in-power *knew* that this was a very clear danger, why wasn't anything done beforehand? Why did they allow the problem to escalate to the point where the clean-up could possibly be more expensive than a preventive solution?... :-/

Paul
Yes I know, I know... now I know...
We have been getting warnings all year. Sometimes the press went to the government with these consernes, but always got "Don't worry - be happy" back... These old news are more visble now than few months ago though...
I think the government were really blinded in it's strong belive on the banks. That's a bit Icelandic, to think we can do anything and nothing is too big for us...

I don’t really know what will happen to the house-market, but it will go down for sure...
The last years, the prizes for houses have gone up, and are most over estimated today – I THINK. The last months, selling have gone done, and currently it is absolutely stopped - of course causing the builders hard time since they cannot sell their work any more, the domino affect have not stopped.
Since I found the renting and housing rather cheap when I moved to Switzerland, you can maybe understand me when I say that it would be “right” for the houses in Iceland to go down in prizes, but of course lot of people will then lose money and in some cases lone could be higher than the house is worth. I can not explain it for you how happy I am I didn’t fall for the new offers of lone in foreign currency like many did, and do now face that the lone have double and values of the houses going down.
The fall of the kròna also makes all food that we need to import (we import almost everything) will get very expensive now…

Some bullets I got from a “group of actions” today:
The government of Iceland guaranteed 300,000 bank savings in England, without asking its people if we were okay with it. (I remind you, we are only 313,000 total in Iceland, and this was only in England.)

The banks have now gone bankrupted and now need its guarantee – US.
The new Landsbanki owned by the government of Iceland just got a lone from the UK for £ 100.000.000. Also the government of Iceland is getting €3.000.000.000 lone from the UK so they can pay up its guarantees…We also got € 1.100.000.000 from Holland to pay up the guarantees there…

And we’re also adding huge loan from IMF for some billions, placing us among countries like Somalia that had needed IMF’s help – that or the Russians…

Getting dizzy? Need to remind that we, the payers, are about 313,000 including old people, disabled people and children….
---
Taxes were before 34,5% of everyone’s salaries, but since we have nice wealfear system and nearly free education, it was not so bad.
No taxes will go up, and the wealfear system cut down…

Can a country really go bankrupt? It is not like we will change a name of a company and continue the business under new ID… We are people who live there and will continue to live there, of course we need to pay for “our” guarantees, even though we know we are going from one of the happiest countries in the world to… a 3rd world country?

At the same time we are watching our country sink in the dirty toilet, the very few riche men dare to come to interview as say, they have it quite good despite the crises…. Do we, the public, have the rights to freeze all their wealth – witch they got by the playing the game witch put Iceland in the possison we are now facing?

Sorry, I can only imagine you see me as angry and bitter, trying to find someone to blame all the time… And yeah, you're right... it is ecactly how I feel right now…
Reply With Quote
Reply

Tags
bank, banking crisis, economy, financial crisis, switzerland, ubs, usa




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Dude, where's the lawsuits? [Financial crisis] dino International affairs/politics 43 26.11.2008 09:37
Shall I tansfer GBP to canton bank for safe keeping swinburne Finance/banking/taxation 1 17.10.2008 13:50
Bank Crisis in Japan nickatbasel Jokes/funnies 1 08.10.2008 23:08
Sub-prime crisis discussion (UBS, CS et al) hugh_abu Finance/banking/taxation 244 09.05.2008 01:33
Need a safe bank Lechuga Finance/banking/taxation 11 13.04.2007 12:40


All times are GMT +2. The time now is 16:48.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0