Iceland then got all upset that they were called terrorists because their banks were offering rates they couldn’t afford and had debts much larger than their GDP and had no way to protect all investors.
That law was used because it was the only law available that could freeze Iceland’s bank’s assets immediately before they disappeared.
I remember in the big short, where they had one of the old traders who was “out of the game” tell the new guys that Iceland (and Greece) were “finished”
They kept interest rates offset from the rest of the West and while I forget the details hedge funds and private Equity types were doing this type of Arbitrage where they buy and sell Securities in different markets en masse leveraging their assets with borrowings, to take advantage of price differences and make risk free profit. That is why we call them parasites.
And it all started with cod fishermen playing funny games with fishing allocations, which essentially were used as syntethic tranches for inflating bank loan valuations, and it all just went out of control soon after.
I mean… If someone can fix the banking system it’s probably the Impossible Mission Force and it’s star agent Tom Cruise… Of course working under his alias Ethan Hunt./s
In 2008, The five largest banks and the largest insurance company in the US all collapsed and required federal rescue, US unemployment rose to 10%, the US stock market crashed by 50%.
But the real problem was the Icelandic interest rate? Really?
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And they jailed banksters instead of bailing them out
The UK used anti-terrorism laws to stop Iceland ripping off UK investors by shifting the location of deposits.
Iceland then got all upset that they were called terrorists because their banks were offering rates they couldn’t afford and had debts much larger than their GDP and had no way to protect all investors.
That law was used because it was the only law available that could freeze Iceland’s bank’s assets immediately before they disappeared.
Ya I remember for a hot second being tempted to put my money into Icelandic banks because they were offering 20% interest rates
Inside Job is a good documentary about the 2008 crash. Worth a watch
The Impossible Mission Force?
I remember in the big short, where they had one of the old traders who was “out of the game” tell the new guys that Iceland (and Greece) were “finished”
*sad West Ham noises*
They kept interest rates offset from the rest of the West and while I forget the details hedge funds and private Equity types were doing this type of Arbitrage where they buy and sell Securities in different markets en masse leveraging their assets with borrowings, to take advantage of price differences and make risk free profit. That is why we call them parasites.
My understanding is that they were doing perfectly fine until other Western states encouraged them to deregulate.
And it all started with cod fishermen playing funny games with fishing allocations, which essentially were used as syntethic tranches for inflating bank loan valuations, and it all just went out of control soon after.
I mean… If someone can fix the banking system it’s probably the Impossible Mission Force and it’s star agent Tom Cruise… Of course working under his alias Ethan Hunt./s
Michael Lewis has written a book on this topic and it’s really interesting.
Iceland has a population of 400k. It’s tiny and it’s banking system is also tiny.
This is peanuts to the IMF. Compared to bailing out Greece which has 20x as many people or Argentina which has 100x as many people.
In 2008, The five largest banks and the largest insurance company in the US all collapsed and required federal rescue, US unemployment rose to 10%, the US stock market crashed by 50%.
But the real problem was the Icelandic interest rate? Really?
The Impossible Mission Force?!?! Wonder what death-defying stunt Tom Cruise had to do to save Reykjavik
Both dollars were saved.
Thanks Biden
check out the story elaborated on in this
if impatient, jump to 26:42… you won’t regret it.
I read IMF as MILF. That is my only contribution to this.