National bankruptcy for iceland

[noble3r]

"We were faced with the real possibility that the national economy would be sucked into the global banking swell and end in national bankruptcy," Mr Haarde said. (prime minister)

How long will it be before we see a country go officially bankrupt?

[Alfachick]

What happens to a country when it goes bankrupt? Does that mean that government bonds are totally worthless as you were investing in the gov? I thought that the chances of an entire country going bankrupt was close to 0. But then banks aren't meant to be dropping like flies either!
Hmmmm Interesting times.

[Zad]

What happens, does China move in and repossess everything, transporting it away on huge container ships? It really doesn't reassure me when the chancellor keeps saying "we will get through this". So far as I know, no big GAME OVER sign will appear, and I don't think God will appear and make the universe implode.

[welshbikerduck]

How does a country go bankrupt exactly?

Very strange times indeed.

[hal-finch]

The task of the authorities over the coming days is clear: to make sure that chaos does not ensue if the Icelandic banks become to some extent non-operational. For this the authorities have many options and they will be used. Both in politics and elsewhere it will be important to sheathe our swords. It is very important that we display both calm and consideration during the difficult days ahead...




http://business.timesonline.co.uk/tol/business/ind...

[welshbikerduck]

I have just done a quick search and the only comparison i can find is that of the early 80's when governments couldn't afford to repay it's loans to the banks. The IMF stepped in and got the banks to restructure. On the whole this solved the problem, the governments just had to change it's fiscal policy to comply. Problem then solved.

This time it is the banks that have run out of money, it maybe because it is late, but i can't seem to get my head around this. Also the governments are now propping up an industry that has imploded, isn't this a case of throwing good money after bad?

[ArticM]

its a strange time, but iceland going bankrupt would not be a particularly significant event given their size. we have had defaults on russia and argentina not that long ago.

more significant is the german gov having to step in and back bank deposits, the TARP and general severe lack of funding in the US and european stonghouses of finance

[slideways]

no more cheap food then and having to put up with that scouse tt









bugger moneypit you beat me to the punchline while i was looking for an apropriate smillie
failed miserably

Edited by slideways on Tuesday 7th October 06:35

[richyb]

headlines said:

"Budget cuts in Iceland make up department shocker!"

Edited by richyb on Tuesday 7th October 07:56

[DSM2]

noble3r said:

"We were faced with the real possibility that the national economy would be sucked into the global banking swell and end in national bankruptcy," Mr Haarde said. (prime minister)

How long will it be before we see a country go officially bankrupt?

Nice out of context quote.

[dickymint]

Germany was bankrupt until that nice Mr. Hitler took charge

Interesting quote............

"We were not foolish enough to try to make a currency [backed by] gold of which we had none, but for every mark that was issued we required the equivalent of a mark's worth of work done or goods produced. . . .we laugh at the time our national financiers held the view that the value of a currency is regulated by the gold and securities lying in the vaults of a state bank."
- Adolf Hitler, quoted in "Hitler's Monetary System," www.rense.com, citing C. C. Veith, Citadels of
Chaos (Meador, 1949)


http://www.webofdebt.com/articles/bankrupt-germany...

Edited by dickymint on Tuesday 7th October 08:12

[Eric Mc]

I hope you are nopt claiming that A Hitler was a great economist. Hitler also ran Germany into massive debt. His method of clearing the debt was to acquire land, resources and cheap labour from neighbouring countries - by force.

I don't think that is an option for Iceland.

[SplatSpeed]

Eric Mc said:

I hope you are nopt claiming that A Hitler was a great economist. Hitler also ran Germany into massive debt. His method of clearing the debt was to acquire land, resources and cheap labour from neighbouring countries - by force.

I don't think that is an option for Iceland.

working for america

[Tony*T3]

Icelands current rate of inflation is 14% apparantly. Might be going up more i'd guess.

[plasticpig]

South Korea effectivley went bankrupt in 97. They almost repeated the experience with with the collapse of Daewoo in 2000.