Iceland's going under...

Maybe not that mundane, and certainly not pointless, but this is the only place I could figure this thing fit.

Just to let you know that things are pretty bad here as well, an article from Bloombergs about the current situation in Iceland.

And to add to it. The ISK is now about to be declared dead, so there’s no trading with it and nobody can get their hands on foreign currency. I’m just hoping my cc will work in Sweden next weekend.

Sucks to be here right now.

I had absolutely no clue - that’s terrible, Red. I hope things work out for you folks.

Dammit. There goes my back up plan for if McSame wins the vote and starts a war with Iran.

You guys only have about 350,000 people. Can we bail YOU guys out instead? it shouldn’t cost much.

What set off this problem? I couldn’t quite understand the start of the failure from the article. Was Iceland businesses just betting too much on continued large growth?

Basically, yes. With everyone owning bits and pieces of everyone else.

So once one of the dominoes started falling, the others started falling with them.

But otoh, for you guys - it’s really cheep to visit now :slight_smile:

Let´s see - the Government spent 600 mil. Euros (about a quantillion ISK at todays exchange rate*) to save one of the banks, which equals 6% of GDP. So for a bil. Euros, you could pretty much buy the place.

Any takers?

  • Slight exaggeration to sooth my mind

Let me get back to you on that, there is a nice bank in Nigeria who wants to give me about that much money if I can help them move their funds…

Iceland will need a new ruler once I buy it…Paging Skald the Rhymer

Well maybe those Dopers not from the US and France. I don’t know if you noticed, France is officially in a Recession now and the US financial system is kind of tottering. Besides is fall/winter really the time to visit your lovely country?

The only currencies that have dropped more than the ISK are the Zimbabwean Dollar and the Azerbadjani Somethingorother. We’re down 60% vs the USD and Euro since the beginning of the year curses
Every season has it’s charms. Now for example, it’s extremely charming with winter’s first snow and me (and everyone else) still on summer-tires. It isn’t supposed to snow for at least another month!

Still, the nature is always breathtaking and it’s certainly quite lovely to sit in a 40°C hottub while having everything frozen around you :slight_smile:

And Ireland too - it was the first EU country to go into recession.

This is nothing new . Iceland has been living beyond its means for decades. The diminishing value of the ISK has been concealed by the ability of the Iceland central bank to borrow. Now there is no liquidity, and so the currency has collapsed.
For a country with only two exports (codfish and bottled water), this is serious.
the USA can go on in its profligate ways, because the Chinese are still willing to lend us money (they don’t want their trillion USD to go “poof”!)

What the hey? Your entire country is about to go prang because the banks overextended themselves? Oh maaaan.

Can you pre-load your CC? Even better, does your regular banking card work as a debit card outside Iceland? (Mine, Canadian, did in Sweden…)

Heck, Alberta has 85 billion dollars in the bank. They could probably make you an offer. But then you’d have to live with Canada’s equivalent of Texas. Although, with what you said in the other thread about Icelanders liking their SUVs, that might actually work.

Sounds about right. Except that you can exchange bottled water for aluminum in the exports.

Interesting little rant and factually wrong as usual.
Fish is the #1 export by far, (70%) but the main exports are fish and fish products, aluminum, and ferrosilicon. My Cite.


A Question: could Iceland run itself on “IOUs”?
In the USA depression years (ca. 1930-1939), deflation caused a scarcity of currency. Inrural areas, many people used their own script (“IOUs”) for money. Could Iceland do the same?
I imagine that Icelandic airlines might have a problem echanging codfish for aircraft parts, though

We* just this week had a professional client offer to pay for some things with a brand-spanking new condo. We declined.

We might have to accept those offers in a few weeks though, considering how the construction companies are doing (better to get something now, than get in line when they declare bancrupcy).

But I don’t really see this happening for private consumption. The economy is way more evolved and waaay more dependant upon easy credit than it was in the Depression-years.

*As in the company I work for

If worst comes to worst, can’t you folks just go back to Viking?

I’m not saying it’s an ideal solution; but honestly, Canada is probably more conquerable now than it was in the 10th century.

Canadians outnumber Icelanders 100:1. You’ll have to marry in. Sorry.

[sub]The line-up for busty blonde Scandinavian maidens starts over here…[/sub]

Ah, we sent a scouting party (Erik the Red) over there then and it wasn’t worth dealing with. Just more of the same now :slight_smile:

And we’ve already taken all the beautiful women from the British Isles, took a dent of France and got a merc gig in Konstantinople.

Maybe we should set our sights on the Carribean Islands? Good weather, rum, but the occasional Hurricane might not be that fun.

Now founding the Icelandic Viking Coalition! Payment in mead and hussies. Anyone in?

Toss in that Indian restaurant north of the duck pond in Reykjavík, and a couple of cute blond hunks, and I’m in.