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Iceland Not To Pay Back The Uk

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Interesting double speak from the BBC.

http://newsvote.bbc.co.uk/2/hi/business/8226717.stm

They claim that Iceland is going to pay back the UK for the money its bank owes to the UK taxpayer for bailing out Icesave et al.

Then it goes on to say that this wont start for 7 years, and then be paid only over 8 years, to a maximum of 2% of GDP, which isnt going to be very high is it.

So why dont they just say that Iceland is in Cant Pay Wont Pay mode?

What I find galling, is that our government actually paid back all the deposits!

Surely they limit any depositor bailouts to UK banks, which can be auditited for solvency on a regular basis before making such a huge commitment?

Personally I would like to see all deposit insurance taken away from our banks unless,

1) The bank is UK Based,

2) Only 1 Account per UK Citizen can be insured

3) The Account pays 1/2% less than the BofE Base Rate

4) The type of Account is specifically designated as an insured account

A bit of moral hazard wouldnt go amiss. If you want to chase high interest rates fine, but do it at your own risk, not someone else's.

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Interesting double speak from the BBC.

http://newsvote.bbc.co.uk/2/hi/business/8226717.stm

They claim that Iceland is going to pay back the UK for the money its bank owes to the UK taxpayer for bailing out Icesave et al.

Then it goes on to say that this wont start for 7 years, and then be paid only over 8 years, to a maximum of 2% of GDP, which isnt going to be very high is it.

So why dont they just say that Iceland is in Cant Pay Wont Pay mode?

What I find galling, is that our government actually paid back all the deposits!

Surely they limit any depositor bailouts to UK banks, which can be auditited for solvency on a regular basis before making such a huge commitment?

Personally I would like to see all deposit insurance taken away from our banks unless,

1) The bank is UK Based,

2) Only 1 Account per UK Citizen can be insured

3) The Account pays 1/2% less than the BofE Base Rate

4) The type of Account is specifically designated as an insured account

A bit of moral hazard wouldnt go amiss. If you want to chase high interest rates fine, but do it at your own risk, not someone else's.

I find myself in complete agreement with this. I actually considered an Icesave Account around 2006, but I didnt go through with the account opening, because I thought the interest rates were just too good to be true and also it was based in Iceland. I thought how do I get my money out if something goes wrong.

Take a risk, if it pays off good for you, if it does then dont expect me and every other tax payer to bail you out.

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I find myself in complete agreement with this. I actually considered an Icesave Account around 2006, but I didnt go through with the account opening, because I thought the interest rates were just too good to be true and also it was based in Iceland. I thought how do I get my money out if something goes wrong.

Take a risk, if it pays off good for you, if it does then dont expect me and every other tax payer to bail you out.

Given your position on your own pension gambles I can only say

:lol::lol::lol::lol::lol:

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Aktoo-ly HMG only compensated personal account holders. Companies, LAs, charidees etc are still fooked.

And the Icelanders are in a rebellious mood. They don't see why they should be taxed to the max to pay a bill to HMG for a private bank that was nothing to do with them and which they didn't get any profit from in the good times. I have to say I'd be narked in their situation as well. ;)

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Guest sillybear2

Putting aside the rampant fraud and cronyism allowed to fester in their banking system, they broke the rules of the EEA by declaring that domestic depositors are 100% safe and everyone else can go swing, if there were to be haircuts then everyone should have suffered equally. They should lobby for Iceland to be kicked out of the EEA, let alone be allowed to join the EU proper.

The island seems full of whiney little bitches, they cannot unilaterally impose contract terms on their creditors, their government carries no sovereign debt, they'll just have to grin and bear it and join the club, the same way every UK household is carrying a £3k stake in RBS and HBOS. If you let charlatans play around on your soil then you have to clear up the mess, just as the UK was stupid enough to boast of the worlds most 'light touch' regulatory regime for the City right up until the crash. Brown was still kissing their outsized asses in June 2007 at the Mansion House.

The electorate gets the government it deserves, namely a bunch of chancers who turned the entire economy into a giant casino run by compulsive gamblers and a government that couldn't control itself and stop spending. People knew what was going on and they loved it, they joined the party and voted for these muppets time and time again not realising where the bill was going to land. The next two generations will have to pay for NuLabour f**kwittery and learn the hard way about socialist governments and crooked bankers, Iceland will have to do the same with their liabilities, otherwise they won't learn a thing.

Only now do 'they' get it, the Establishment has only just realised the joke is on them, they've played host to a bunch of socially useless parasites and the "doom mongers" were spot on.

Edited by sillybear2

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If the FSA backed the Icelandic banks upto 35K or whatever it was, yes they should refund depositors. Its the FSA's fault for not collecting the required money from the banks it garentees.

The FSA was asleep at the wheel and now we are all paying for the consequences.

All the FSA had to do was follow the money, its not rocket science, yet, if something doesnt blow up, it wont wake them up. Lets hope they learn from their mistakes.

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Guest sillybear2
And the Icelanders are in a rebellious mood. They don't see why they should be taxed to the max to pay a bill to HMG for a private bank that was nothing to do with them and which they didn't get any profit from in the good times. I have to say I'd be narked in their situation as well. ;)

Too late, they should have complained when the good times were rolling and their 'economic miracle' was unfolding... nobody said a word.

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Play Nice Injin.

Oh alright then but only because I agree with you on this one.

Private banks nicked a load of money and made dodgy bets. I don't see why it's Hrolf Sternsonsons the puffin farmers responsibility to pay the victims back.

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Oh alright then but only because I agree with you on this one.

Private banks nicked a load of money and made dodgy bets. I don't see why it's Hrolf Sternsonsons the puffin farmers responsibility to pay the victims back.

Agreed.

And those crooks wouldnt have got their hands on a pile of UK dosh if they FSA had made it clear that the deposits had no insurance.

Thinking about it some more, they still would have got a load of deposits even if people had known it wasnt underwritten. But at least the Chancellor could have had some backbone and not bailed them out.

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Too late, they should have complained when the good times were rolling and their 'economic miracle' was unfolding... nobody said a word.

What happens when the Chinese want their money? Will they kindly exempt contributors to the HPC forum?

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Guest sillybear2
Oh alright then but only because I agree with you on this one.

Private banks nicked a load of money and made dodgy bets. I don't see why it's Hrolf Sternsonsons the puffin farmers responsibility to pay the victims back.

If you open the door and let a bunch of pyromaniacs play in your house then you can hardly complain when they burn the place to the ground.

The thing is, they're quite happy for their government to stand behind their domestic deposits, they just want everyone else to go f**k themselves.

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Guest sillybear2
What happens when the Chinese want their money? Will they kindly exempt contributors to the HPC forum?

Nope, democracy doesn't work like that, HPC contributors will be collateral damage :-

A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship. The average age of the world's greatest civilizations has been 200 years.

Great nations rise and fall. The people go from bondage to spiritual truth, to great courage, from courage to liberty, from liberty to abundance, from abundance to selfishness, from selfishness to complacency, from complacency to apathy, from apathy to dependence, from dependence back again to bondage.

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I have had similar conversations. Only to find people with the same viewpoint were ING depositors.

ICESAVE deposits were guaranteed and I do not see an issue with trying to get the best rate for savings. If interest rates where calculated on true inflation and included house prices. Over the past 10 years interest rates would have been a lot higher and our economy would not be in this mess.

Unfortunately Brown loves his debtors and savers again get shafted.

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Nope, democracy doesn't work like that, HPC contributors will be collateral damage :-

A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship. The average age of the world's greatest civilizations has been 200 years.

Great nations rise and fall. The people go from bondage to spiritual truth, to great courage, from courage to liberty, from liberty to abundance, from abundance to selfishness, from selfishness to complacency, from complacency to apathy, from apathy to dependence, from dependence back again to bondage.

I better start stockpiling gimp masks then.

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Guest sillybear2
I better start stockpiling gimp masks then.

Yup, they're probably made in China too.

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Interesting double speak from the BBC.

http://newsvote.bbc.co.uk/2/hi/business/8226717.stm

They claim that Iceland is going to pay back the UK for the money its bank owes to the UK taxpayer for bailing out Icesave et al.

Then it goes on to say that this wont start for 7 years, and then be paid only over 8 years, to a maximum of 2% of GDP, which isnt going to be very high is it.

So why dont they just say that Iceland is in Cant Pay Wont Pay mode?

What I find galling, is that our government actually paid back all the deposits!

Surely they limit any depositor bailouts to UK banks, which can be auditited for solvency on a regular basis before making such a huge commitment?

Personally I would like to see all deposit insurance taken away from our banks unless,

1) The bank is UK Based,

2) Only 1 Account per UK Citizen can be insured

3) The Account pays 1/2% less than the BofE Base Rate

4) The type of Account is specifically designated as an insured account

A bit of moral hazard wouldnt go amiss. If you want to chase high interest rates fine, but do it at your own risk, not someone else's.

I find myself in complete agreement with this. I actually considered an Icesave Account around 2006, but I didnt go through with the account opening, because I thought the interest rates were just too good to be true and also it was based in Iceland. I thought how do I get my money out if something goes wrong.

Take a risk, if it pays off good for you, if it does then dont expect me and every other tax payer to bail you out.

Well, housebuyers have been richly rewarded for their fecklessness with government bailouts. Personally I have a very large amount invested with Icesave and got it all back through the FSCS - with 7.5% interest!! :lol:

Had the FSA done their job, this would never have been an issue. Had the FSA not allowed Iceland to offer savings accounts to UK customers, the government would never have had all that juicy tax revenue from people's savings every month, of which the FSA was recevieing its cut.

Very simple really.

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The point is, why should the Icelandic population pay anybody a penny. It wasn't them who took savers' cash, lent it to themselves and then disappeared. The criminals who actually committed the crime are long gone. If I was Iceland I would tell the UK and Netherlands to take a hike.

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The point is, why should the Icelandic population pay anybody a penny. It wasn't them who took savers' cash, lent it to themselves and then disappeared. The criminals who actually committed the crime are long gone. If I was Iceland I would tell the UK and Netherlands to take a hike.

Yep, it's the equivalent of people in this country having to cough up to foreign creditors for Grant Bovey's misadventures.

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If you open the door and let a bunch of pyromaniacs play in your house then you can hardly complain when they burn the place to the ground.

Still don't get how that's Hrolf's fault. It'd take a fortnight to explain to the average person what the ******s happened, so I can't see how they are responsible for not stopping it.

The thing is, they're quite happy for their government to stand behind their domestic deposits, they just want everyone else to go f**k themselves.

This is true, but doesn't mean they are responsible for anything.

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Putting aside the rampant fraud and cronyism allowed to fester in their banking system, . . . .

Only now do 'they' get it, the Establishment has only just realised the joke is on them, they've played host to a bunch of socially useless parasites and the "doom mongers" were spot on.

Wot - like an 'iota'?

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Guest sillybear2
That any govt would have to pay 6 per cent of GDP to two creditors for a failed bank is incredible.

The UK is now on the hook for and guaranteeing bank assets equivalent to 100% of GDP.

The percentage is simply a symptom of allowing an outsized financial services sector/ponzi scheme to operate within your territory.

Edited by sillybear2

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Putting aside the rampant fraud and cronyism allowed to fester in their banking system, they broke the rules of the EEA by declaring that domestic depositors are 100% safe and everyone else can go swing, if there were to be haircuts then everyone should have suffered equally. They should lobby for Iceland to be kicked out of the EEA, let alone be allowed to join the EU proper.

The island seems full of whiney little bitches, they cannot unilaterally impose contract terms on their creditors, their government carries no sovereign debt, they'll just have to grin and bear it and join the club, the same way every UK household is carrying a £3k stake in RBS and HBOS. If you let charlatans play around on your soil then you have to clear up the mess, just as the UK was stupid enough to boast of the worlds most 'light touch' regulatory regime for the City right up until the crash. Brown was still kissing their outsized asses in June 2007 at the Mansion House.

The electorate gets the government it deserves, namely a bunch of chancers who turned the entire economy into a giant casino run by compulsive gamblers and a government that couldn't control itself and stop spending. People knew what was going on and they loved it, they joined the party and voted for these muppets time and time again not realising where the bill was going to land. The next two generations will have to pay for NuLabour f**kwittery and learn the hard way about socialist governments and crooked bankers, Iceland will have to do the same with their liabilities, otherwise they won't learn a thing.

Only now do 'they' get it, the Establishment has only just realised the joke is on them, they've played host to a bunch of socially useless parasites and the "doom mongers" were spot on.

The Icelandic banking sector has been a den of thieves and vipers for some years now, with it's roots connected

to uncertain finances from Russia, allegedly.

Forensic auditors are also alleging unsecured loans were made to individuals on the basis they would buy stock in the bank to prop up the share price.

And to take the biscuit, it transpires that the cash that enabled Borgulfur Gudmundsson and his son Thor to buy

Landsbanki was in a form of a loan from Kaupthing Bank !

At the time, most people thought it was a cash deal with money from the sale of their successful brewing business in Russia.

Prosecutions will follow, I'm sure.

Edited by Fishman

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