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Icelandic Stock Market Fell 94%!

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http://www.ft.com/cms/s/0/97cb78ba-a3ea-11...144feabdc0.html

Thank 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

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http://www.ft.com/cms/s/0/97cb78ba-a3ea-11...144feabdc0.html

Thank 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.

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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 ...

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Guest UK Debt Slave
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

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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

They didn't need any outside help.

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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

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Guest UK Debt Slave
They didn't need any outside help.

Your kidding

Their banking and economic sector was hijacked and destroyed.

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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.

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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

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 ...

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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.

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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?

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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 by InternationalRockSuperstar

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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 ;)

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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

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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.

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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

That is so dimwitted. The EU had nothing to do with Iceland destroying itself.

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