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sortofsilver

My, My, My, My Krona! Its Toast.

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I think "Run on Iceland" would have been a better title for this thread - visions of chavs running around, rugby-tackling each other (and that's the women) for the last of the Fish Fingers...

Edit: Missing word

Edited by narrowescape

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I'm just about to start a savings bond with Icesave, do I cancel?

Plenty of bonds here in the UK paying over 6% with much safer banks /building societies .

Icelandic banks = :ph34r:

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Actually I wonder why do the BoE guarantee savings at Icelandic banks? (Please correct me if I this isn't correct.) The implied credit risk of those banks would make them pay 5-6% above HSBC or Barclays in the wholesale market. If you can deposit @5.75% at HSBC, why would you chase <1% yield pick-up at junk institutions?

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Not to worry, Swedish Kronor are sound as a pound! Iceland was headed for a fall. Anyone who thought Banks created wealth, is going to be proven wrong. Iceland bought into the new economic model, i.e. financials are king. Now we will see the results on display. A 25% drop in the Krona can't be good for the average Icelander. Yes, Iceland could be a small version of the monster USA collapse. I'll keep a close eye on my ethnic kin out there in the Atlantic. Lycka till, ni kommer att behöva det! :o

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But the real horrors are in Iceland.

Credit insurance for debts at Iceland's biggest bank, Landsbanki, is priced at 610 points while that for Kaupthing is priced at a hair-raising 856. Given that these two have taken billions in UK retail deposits, it may be a sobering thought for savers to consider where they are putting their cash. These banks are now seen as the most unsafe in the developed world.

Of course, no one can be sure that disaster looms for anyone, but the figures on credit default swaps show clearly where investment professionals think the big risks are.

You have been warned.

http://www.thisismoney.co.uk/investing-and...mp;in_page_id=3

Edited by laurejon

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Isolated small island communities with no oil or large production of real goods , rely on fishing and tourism to be self suffiecient. Iceland could easily go back to these days. ohmy.gif

Iceland has an obscene amount of geothermal energy, good fishing etc, they will be ok in the long run, more than enough for self sufficiency I'd say.

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The CDS Rating of the Banks, anyone leaving their money in IceSave is either working in a branch and has first hand knowledge, or is stark raving mad.

Alliance & Leicester 480

Anglo Irish Bank 383

Barclays 134

HBOS 281

HSBC 121

ICICI (India) 358

Kaupthing (Iceland) 902

Landsbanki (Iceland) 686

Lloyds TSB 112

Royal Bank of Scotland 194

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Time to get money out of Icesave me thinks. But question is, what to do with it now?

I've followed the advice of lots of people on this forum and suggest you do the same: Northern Rock. I don't see what can beat it as a place to deposit cash.

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Time to get money out of Icesave me thinks. But question is, what to do with it now?

Invest in a business that manufactures electric tractors or electric combines ;)

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  • 293 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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