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Original poster

Iceland

11 replies

newwave · 11/04/2011 22:04

Well done Icelands voters for voting against paying for the screw ups of the private banks out of taxpayers pockets.

As always it seems it is private profit and public debt, I am glad that for once someone has said stuff that.

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conculainey · 11/04/2011 22:28

I agree, about time the people in the U.K gave the bankers and the goverment a bit of stick, they deserve it and its long overdue.

Original poster
newwave · 11/04/2011 22:36

Makes me laugh that some banks a proposing moving their head offices because the government has said they have to seperate the casino from the High Street and also carry enough capital so we dont have to bail them out again.

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Gafasipo · 13/04/2011 17:16

Money is all just another religious illusion. Balls to it.

Chil1234 · 13/04/2011 23:26

UK and Netherlands are owed £4bn by Iceland because they compensated Icesave customers. The Icelandic president says we will get back the money in spite of this referendum. How they deal with their own banks on their own turf is for them to decide.... but the money they owe us is a legal obligation and they should cough up.

Original poster
newwave · 13/04/2011 23:33

but the money they owe us is a legal obligation. That will have to be decided in court and I have the Icelandic people win.

Private profit and public debt as usual.

The banks were private and not state organisations were they not.

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Original poster
newwave · 13/04/2011 23:33

"and I hope"

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Niceguy2 · 13/04/2011 23:43

Newwave, would you say the UK govt should not have paid out for Northern Rock or Bradford & Bingley?

The problem for Iceland is that the issue is no longer about bailing banks out but about trust.

Icesave & the other banks operated in this country because they offered a compensation scheme similar to our own FSCS rules. The Icelandic govt guaranteed the first ?20k of any savings. That's not a nice to have. That was a guarantee.

The banks went bang and only then did people realise that actually Iceland govt didn't have enough cash.

Meum pactum dictum. My word is my bond. If we cannot trust that the govt will make good on their promise then who is going to lend them money? Would you lend cash to someone who refused to pay you back despite guaranteeing they would? They may have really good reasons why but you still wouldn't would you?

And it's going to be difficult for Iceland to join the EU when it's pissed off two major members by refusing to pay its debts and showing that they only keep promises when it suits them.

Their president knows that unless they want to be a financial pariah and stand any chance of joining the "stability" of the EU that it must be seen to pay its way in the world. Alas their people don't think that far ahead. Just like the people of Portugal don't realise it's cuts now or more cuts later.

Original poster
newwave · 13/04/2011 23:49

And it's going to be difficult for Iceland to join the EU when it's pissed off two major members by refusing to pay its debts and showing that they only keep promises when it suits them.

Plenty on here saying we should break our word regarding the Portugal bail out.

You do realise the Icelandic government have no chance on winning a referendum on EU membership.

As for defaulting on debt both Argentina and Thailand have and are doing fine now.

Ireland should do the same, bondholders should practise due dilligence and not expect to be bailed out when they make poor decisions.

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Niceguy2 · 13/04/2011 23:56

Well I've said we shouldn't bail Portugal out until they accept that cuts are necessary. Right now they have their head in the sand still. You are just throwing good money after bad otherwise. But once they accept the inevitable we do need to pony up the money as we've signed up to (thanks Mr Darling).

I agree that Iceland probably have no chance. But they still want to and that's the important fact here. It's not what we want, its what they want. If they want it, they have to play by the rules. And one rule is not to be seen as someone you cannot trust.

Yes of course Iceland can default. But the short term pain from the consequences are even worse as people will not lend the govt money unless it's at a higher rate of interest. And when you have no money and reliant upon borrowing to make ends meet, that is not something you want!

If I want to buy a TV, am I better off with a good credit history and getting a loan from my bank at 10% APR or with a crap credit rating and having to borrow the money from Brighthouse at 29.9% APR?

Original poster
newwave · 14/04/2011 00:28

I agree that Iceland probably have no chance. But they still want to

Crossed Wires, the people of Iceland would not agree to join the EU, the Icelandic government could not win a referendum to take Iceland into the EU.

I read an article a while ago that said the split was 70/30 against applying to the EU for membership.

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exquisiy · 14/04/2011 00:35

I wish the govt here would deal with their own bankers properly first. They just waided in with their size 11s and didn't give Iceland a chance.

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