lowrentyieldmakessense(honest!) Posted September 18, 2009 Share Posted September 18, 2009 http://www.ft.com/cms/s/0/97cb78ba-a3ea-11...144feabdc0.htmlThank God that can't happen here. Britain has never had any truck with overleveraged, overblown puffed up companies with any of that off-balance sheet trickery. Thank goodness we never succumbed to temptation during the boom, and therefore have had nothing to cover up since. is that fall in their currency Quote Link to comment Share on other sites More sharing options...
ralphmalph Posted September 18, 2009 Share Posted September 18, 2009 http://www.ft.com/cms/s/0/97cb78ba-a3ea-11...144feabdc0.htmlThank God that can't happen here. Britain has never had any truck with overleveraged, overblown puffed up companies with any of that off-balance sheet trickery. Thank goodness we never succumbed to temptation during the boom, and therefore have had nothing to cover up since. RBS beat the Icelanders. £7.50 to 10p I make that 98.7% fall. Whatever the Icelanders can do the Scottish Bankers can do better. Quote Link to comment Share on other sites More sharing options...
athom Posted September 18, 2009 Share Posted September 18, 2009 I really want to see what is happening to the man on the street over there Quote Link to comment Share on other sites More sharing options...
ralphmalph Posted September 18, 2009 Share Posted September 18, 2009 I really want to see what is happening to the man on the street over there They are eating fish but can not afford the chips. Quote Link to comment Share on other sites More sharing options...
Confounded Posted September 18, 2009 Share Posted September 18, 2009 Interesting image on the Iceland collapse, if it does not come out well here is the link http://www.joeydevilla.com/wordpress/wp-co...easy-steps1.gif Quote Link to comment Share on other sites More sharing options...
porca misèria Posted September 18, 2009 Share Posted September 18, 2009 Sounds like there should be some great recovery opportunities in Iceland. Anyone know how to put a punt on it? A grand now should be in with a good chance to be a ten-bagger if it survives long enough ... Quote Link to comment Share on other sites More sharing options...
Guest UK Debt Slave Posted September 18, 2009 Share Posted September 18, 2009 Sounds like there should be some great recovery opportunities in Iceland. Anyone know how to put a punt on it? A grand now should be in with a good chance to be a ten-bagger if it survives long enough ... They'll accept the Euro Which of course was the plan all along and the reason why their economy had to be destroyed I wouldn't invest in any EU country.............. or Iceland Quote Link to comment Share on other sites More sharing options...
huw Posted September 18, 2009 Share Posted September 18, 2009 Interesting image on the Iceland collapse, if it does not come out well here is the link http://www.joeydevilla.com/wordpress/wp-co...easy-steps1.gif Interesting ... from step 3 on the chart: "the stock market rose ninefold, or an average of 44% a year, from 2001 to 2007." In that context, a 94% fall is not so shocking. Quote Link to comment Share on other sites More sharing options...
yellerkat Posted September 18, 2009 Share Posted September 18, 2009 They'll accept the EuroWhich of course was the plan all along and the reason why their economy had to be destroyed I wouldn't invest in any EU country.............. or Iceland They didn't need any outside help. Quote Link to comment Share on other sites More sharing options...
athom Posted September 18, 2009 Share Posted September 18, 2009 Sounds like there should be some great recovery opportunities in Iceland. Anyone know how to put a punt on it? A grand now should be in with a good chance to be a ten-bagger if it survives long enough ... Things can always get worse Quote Link to comment Share on other sites More sharing options...
Guest UK Debt Slave Posted September 18, 2009 Share Posted September 18, 2009 They didn't need any outside help. Your kidding Their banking and economic sector was hijacked and destroyed. Quote Link to comment Share on other sites More sharing options...
porca misèria Posted September 18, 2009 Share Posted September 18, 2009 Interesting ... from step 3 on the chart: "the stock market rose ninefold, or an average of 44% a year, from 2001 to 2007."In that context, a 94% fall is not so shocking. So that's something between 6 and 7 years. Let's take the maximum of 7. That leaves the change at 1.44 ^ 7 * (1 - 0.94), or in other words a 23% fall from 2001. If we say just 6 years it becomes a 47% fall. So the crucial question is: what currency is each of those figures measured in? Makes a big difference! And of course, how much of the bubble was accounted for by just three big banks: I expect excluding them will materially affect the figures. Quote Link to comment Share on other sites More sharing options...
Number79 Posted September 18, 2009 Share Posted September 18, 2009 They didn't need any outside help. maybe, but they got it anyway Quote Link to comment Share on other sites More sharing options...
porca misèria Posted September 18, 2009 Share Posted September 18, 2009 They'll accept the EuroWhich of course was the plan all along and the reason why their economy had to be destroyed I wouldn't invest in any EU country.............. or Iceland Your choice. My EU investments are doing nicely - including those from more than a year ago. Oh, and my "new Europe" investments are doing even better. Yes, I'm aware they can fall too, but they've held up better than the UK portfolio ... Quote Link to comment Share on other sites More sharing options...
200p Posted September 18, 2009 Share Posted September 18, 2009 Interesting ... from step 3 on the chart: "the stock market rose ninefold, or an average of 44% a year, from 2001 to 2007."In that context, a 94% fall is not so shocking. Lol The bull comes up the stairs, whilst the bear jumps out of the window. Quote Link to comment Share on other sites More sharing options...
Optobear Posted September 18, 2009 Share Posted September 18, 2009 I really want to see what is happening to the man on the street over there The world didn't end, their government bailed out the banks. Imports became dearer for icelanders, and unemployment has risen considerably. Apparantly there are soup kitchens to help those suffering, but not anything like the images from the US in the 1930s. Most building projects are stopped, and there are lots of new apartments standing empty. The man in the street is wearing this T-shirt http://www.flickr.com/photos/borkurdotnet/3221461589/ Can you blame them? Quote Link to comment Share on other sites More sharing options...
InternationalRockSuperstar Posted September 18, 2009 Share Posted September 18, 2009 (edited) Your choice.My EU investments are doing nicely - including those from more than a year ago. Oh, and my "new Europe" investments are doing even better. Yes, I'm aware they can fall too, but they've held up better than the UK portfolio ... not saying much Edited September 18, 2009 by InternationalRockSuperstar Quote Link to comment Share on other sites More sharing options...
porca misèria Posted September 18, 2009 Share Posted September 18, 2009 not saying much Well, actually ... FY 2008-9 (Apr-Apr) I lost 1% on the overall equities portfolio, which I think beats the market by rather a lot. Since then it has of course risen a lot, along with the rest of the world. Not to be sneezed at Quote Link to comment Share on other sites More sharing options...
InternationalRockSuperstar Posted September 18, 2009 Share Posted September 18, 2009 FY 2008-9 (Apr-Apr) I lost 1% on the overall equities portfolio relative to what? Quote Link to comment Share on other sites More sharing options...
TheEmperorHasNoClothes Posted September 18, 2009 Share Posted September 18, 2009 The world didn't end, their government bailed out the banks. Imports became dearer for icelanders, and unemployment has risen considerably. Apparantly there are soup kitchens to help those suffering, but not anything like the images from the US in the 1930s. Most building projects are stopped, and there are lots of new apartments standing empty.The man in the street is wearing this T-shirt http://www.flickr.com/photos/borkurdotnet/3221461589/ Can you blame them? Lol I went to iceland earlier this year, and went to that exact shop! And loved the t-shirt, so did everyone I showed the photo too Quote Link to comment Share on other sites More sharing options...
porca misèria Posted September 19, 2009 Share Posted September 19, 2009 relative to what? Cash. And that is, of course, excluding actual cash in the bank. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted September 19, 2009 Share Posted September 19, 2009 A 94% fall appears to be a depression level collapse. Quote Link to comment Share on other sites More sharing options...
porca misèria Posted September 19, 2009 Share Posted September 19, 2009 2) I have read that (because of over-leverage) 80% of companies went bust after the South Sea Bubble, and those that remained lost 90% of their value, leading to a 98% destruction of capital. I think by some metrics the recent bubble was as large or even larger than the South Sea Bubble (in real terms). IMO all the government and central bank shenanigans thus far have only delayed the day of reckoning. (But they have certainly succeeded in making the nominal outcome fuzzy and unpredictable, which is a bugger). Aren't you ignoring currency effects? Iceland's 94% reported here was measured in dollars, which exaggerates the effect in local currency. Quote Link to comment Share on other sites More sharing options...
Jesusaves Posted September 19, 2009 Share Posted September 19, 2009 They are eating fish but can not afford the chips. The islanders were living well beyond their means. Some familys owned not 1, 2 but 3.............. puffins. Quote Link to comment Share on other sites More sharing options...
Cygnus Alpha Posted September 19, 2009 Share Posted September 19, 2009 They'll accept the EuroWhich of course was the plan all along and the reason why their economy had to be destroyed I wouldn't invest in any EU country.............. or Iceland That is so dimwitted. The EU had nothing to do with Iceland destroying itself. Quote Link to comment Share on other sites More sharing options...
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