Tuesday, October 07, 2008

ICELAND Banks On The Ropes?

In this article from the Times of London, it appears that no nation is safe from the meltdown in the financial services sector.
It appears that Icelandic banks went into investing overseas and it was much more than the small island nation's entire gross domestic product. And worse, because the Icelandic government has had to rescue one bank and is trying to do the same to another, it appears that Iceland may go bankrupt.
And this is the amazing part of the story:

In a surprise move, this morning the Icelandic central bank announced that it hoped to arrange a €4 billion loan from Russia to stave off financial meltdown. Officials will travel to Moscow tomorrow for talks.

Russia is now possibly going to help stave off bankrupcy in Iceland.
This is a real mess and one thing that Sen. "F--- You" McCain pointed out in tonight's "debate" is that energy independence is a vital national security issue.
The fact that some American money ends up as petro dollars and in the Russian treasury is bad enough. But, no doubt, some of that money will go to help Iceland stave off bankrupcy.
This is really astonishing.
If tiny Iceland may go belly up, what is to say that a much larger nation may not have the same fate?

3 comments:

Pat Jenkins said...

well said 64. the LAST thing the world needs is russia having power through owed debt!!

Ray York said...

Since Iceland is a Commonwealth of England first and foremost. I understand there are high level meetings with finance ministers from both countries. I'm sure the Crown will take take care of it's own.

Rightwingsnarkle said...

Since Iceland is a Commonwealth of England first and foremost...

That's news to anybody of Nordic ancestry, as well as to the queen.

Wrong. Try again.