Jump to content


Photo
- - - - -

Iceland Coming In From The Cold


  • Please log in to reply
22 replies to this topic

#1 geezer466

geezer466

    HPC Veteran

  • Members
  • PipPipPipPip
  • 2,819 posts
  • Location:200 Meters from Probably the Most Famous Prom in the World

Posted 17 February 2012 - 05:43 PM

Iceland is safe to invest in again, according to Fitch, which has upgraded its credit rating three years after its economy spectacularly collapsed. Fitch raised Iceland's sovereign rating by one notch, to BBB- from BB+, meaning that the country's debt is now "investment grade"

Interesting that Iceland is being brought back in from the cold at such a pivotal time.

The fact they had their own currency and were able to devalue to 'get the bad stuff' over quickly has brought them back from the cliff edge much quicker. Complete bust to something approaching normality in just three years. A greek would snatch your hand off for a piece of that!!
This is the space for the signature thingy.........

#2 PricedOutNative

PricedOutNative

    HPC Veteran

  • Members
  • PipPipPipPip
  • 1,154 posts

Posted 17 February 2012 - 05:49 PM

Icelandic people are more willing to sail into the unknown than the Greeks, just look at their histories...

#3 TheBlueCat

TheBlueCat

    HPC Guru

  • Members
  • PipPipPipPipPipPip
  • 7,380 posts
  • Location:Toronto

Posted 17 February 2012 - 05:52 PM

Icelandic people are more willing to sail into the unknown than the Greeks, just look at their histories...

That's a bit unfair:

http://en.wikipedia....Greek_explorers

#4 Toto deVeer

Toto deVeer

    HPC Veteran

  • Members
  • PipPipPipPip
  • 1,905 posts

Posted 17 February 2012 - 06:51 PM

Hell, they paid back their IMF loan early. That should be good for an upgrade. Arresting and prosecuting bankers should also put the fear into the ratings agencies.
There's no earthly way of knowing...which direction we are going...
--Willy Wonka

Space is not a passive vacuum, but has properties that impose powerful constraints on any structure that inhabits it....
--Arthur Loeb

#5 Bloo Loo

Bloo Loo

    Ripened on the Diversity Vine

  • Members
  • PipPipPipPipPipPipPip
  • 51,596 posts
  • Location:Essex-the land of Equality
  • About Me:Im Bloo yabba dee yabba die.

Posted 17 February 2012 - 06:58 PM

it costs as much to make a cup of tea in Iceland as it does in Greece in terms of human time.

Why has devaluation helped?

I say...default has done the job nicely, and that financialisation of everything Icelandic made everything too expensive to sell.
WARNING

Your
country is at risk
if you
do not keep up repayments
on a gilt or other loan secured on it





#6 aSecureTenant

aSecureTenant

    Formerly Socially Housed and 'Steed'

  • Members
  • PipPipPipPipPipPipPip
  • 20,608 posts
  • Location:Yorkshire
  • About Me:Vote LABOURTORY. You have no choice!

Posted 17 February 2012 - 07:07 PM

Small economy innit. Wouldn't work for Greece, or us. Posted Image

"Capitalism has defeated communism. It is now well on its way to defeating democracy" - David Korten

"The real tragedy is not whether lib lab or con will win but that one of them will" - Sir Harold m



#7 no accountant

no accountant

    HPC Regular

  • Members
  • PipPipPip
  • 656 posts

Posted 17 February 2012 - 07:32 PM

Small economy innit. Wouldn't work for Greece

Why not? If they devalue by 60% then almost all tourist going to the Med would go there, and they have full employment before the summer's out.
I getting ready on Hire Your Own Island for Week buy button.
We rent for 1350 a month. The landlord needs ~3350to get a 7% net return on current asset value.

#8 geezer466

geezer466

    HPC Veteran

  • Members
  • PipPipPipPip
  • 2,819 posts
  • Location:200 Meters from Probably the Most Famous Prom in the World

Posted 17 February 2012 - 08:00 PM

Tourism is Greece's best only bet............
This is the space for the signature thingy.........

#9 BalancedBear

BalancedBear

    HPC Veteran

  • Members
  • PipPipPipPip
  • 1,253 posts

Posted 17 February 2012 - 08:20 PM

You cannot really compare the two. Iceland was brought to its knees by its banks, but the government was otherwise living fairly well within its means. The problem in Greece is that the Government is borrowing just to keep paying bills, and is living way beyond its means. Devaluation in Greece - if it had its own currency would not help at all. It woul still need to implement massive cuts, which is what the Greeks don't like.

Just the same as in the UK, we could devalue all we like, but cuts in government spending are still required.

#10 Qetesuesi

Qetesuesi

    HPC Veteran

  • Members
  • PipPipPipPip
  • 2,013 posts

Posted 17 February 2012 - 09:02 PM

Tourism is Greece's best only bet............


http://cleanenergyso...omy-solar-power
Posted Image

"I think the idea is that if you hear something for long enough from a variety of sources, you automatically end up thinking it is self evident, without questionning the matter." - _w_

"People would rather be wrong, but in the right crowd." - Daniel Hannan

#11 Nomak

Nomak

    HPC Poster

  • New Members
  • PipPip
  • 81 posts
  • Location:Bulgaria

Posted 17 February 2012 - 09:17 PM

You cannot really compare the two. Iceland was brought to its knees by its banks, but the government was otherwise living fairly well within its means. The problem in Greece is that the Government is borrowing just to keep paying bills, and is living way beyond its means. Devaluation in Greece - if it had its own currency would not help at all. It woul still need to implement massive cuts, which is what the Greeks don't like.

Just the same as in the UK, we could devalue all we like, but cuts in government spending are still required.

True.

Also the problems Iceland had (the banks) while serious, weren't long term. They just let the banks go bankrupt, and rebuilt from there.

It doesn't have problems of tax collection, corruption, embezzlement, bureaucracy etc. that Greece has, that will take years to fix (if at all).

#12 RufflesTheGuineaPig

RufflesTheGuineaPig

    is fluffy

  • New Members
  • PipPipPipPipPipPipPip
  • 8,035 posts
  • Location:Cricklade, UK
  • About Me:I am Ruffles, the destroyer of worlds....

Posted 17 February 2012 - 11:45 PM

Prior to the banks turning up and f*cking everything up, iceland was fine.

They are very family centric and have a tiny population compared to the land mass.

Greece was screwed before the banks helped them "improve their quality of life" and simply doesn't have the social cohesion of iceland. They also owe several magnatudes more.
It's time to pay the piper. There is no magician who will magic away the debt. Someone is going to have to pay it. Bend over and prepare to make payment.

In this glorious nation of ours, if you work hard and keep your head down for 25 years then you too can aspire to own one-eighth of a one bedroom flat in Manchester.


My mum and day always tell me how important it is to save to buy a house. They should know, it took them nearly 6 months to save for theirs. As teenagers, they bought a 3 bed semi.

#13 Mikhail Liebenstein

Mikhail Liebenstein

    HPC Guru

  • Members
  • PipPipPipPipPipPip
  • 6,082 posts
  • Location:Dorking

Posted 18 February 2012 - 08:17 AM

Hell, they paid back their IMF loan early. That should be good for an upgrade. Arresting and prosecuting bankers should also put the fear into the ratings agencies.


I'm waiting for the case of the Greek People versus Goldman Sachs to be drawn up and taken to the EU.

#14 copydude

copydude

    HPC Senior Veteran

  • Members
  • PipPipPipPipPip
  • 3,613 posts
  • Location:Exile

Posted 18 February 2012 - 05:03 PM

You cannot really compare the two. Iceland was brought to its knees by its banks


I'd venture to suggest that Iceland is comparable to many. Tiny Ireland was brought to its knees by banks. Iceland also had a rash of overbuilding property no one was ever going to buy. And people buying Range Rovers ( 'Game Overs') on credit.

The difference is that Iceland wasn't held to ransom and usury (or 'rescued') like its bank-stricken counterparts. It wasn't forced to privatise its only assets - like selling its thermal energy to Deutsche Thernalkom - and it didn't have the ball and chain of EU regulation preventing it from utilising local resources (like whale blubber) to revitalise the economy. Most of all, it wasn't forced to recapitalise its criminal banks, a la Ireland and Greece.

#15 The Eagle

The Eagle

    HPC Senior Veteran

  • Members
  • PipPipPipPipPip
  • 4,692 posts

Posted 18 February 2012 - 05:46 PM

Prior to the banks turning up and f*cking everything up, iceland was fine.

They are very family centric and have a tiny population compared to the land mass.

Greece was screwed before the banks helped them "improve their quality of life" and simply doesn't have the social cohesion of iceland. They also owe several magnatudes more.


You clearly don't know what you are talking about. in Greece family is far more important than in most other European countries, also social cohesion among common people is far stronger than in center-north Europe (where individualism is king), the difference is in Greece (like also in Italy, but not as strongly) the state is seen as an intruder/oppressor rather than part of social life.

Edited by awake_eagle, 18 February 2012 - 05:47 PM.

Owe no man anything but to love one another.
[Romans 13:8]
>>Thrive: What On Earth Will It Take? << - Must see movie! (click to watch on youtube)
Description from IMDB ( http://www.imdb.com/title/tt2063834/ ):
"An unconventional documentary that lifts the veil on what's really going on in our world by following the money upstream - uncovering the global consolidation of power in nearly every aspect of our lives. Weaving together breakthroughs in science, consciousness and activism, THRIVE offers real solutions, empowering us with unprecedented and bold strategies for reclaiming our lives and our future."




0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users