WSJ’s Andy Jordan examines how Iceland’s economic miracle came to an abrupt end and explains why the world should care about the collapse of the small country’s financial system.
12/26/2008
In any great organization it is far, far safer to be wrong with the majority than to be right alone. —John Kenneth Galbraith
Asian currencies continue to sell off vs the $ on the heels of the news yesterday that South Korea said they will look into hot money inflows stemming from the $ carry trade and the Bank of Indonesia said they are looking into the foreign buying of bills. This follows the news a few weeks ago that Taiwan was limiting foreign deposit holdings and Brazil was taxing foreign inflow transactions. As I mentioned yesterday, we may have reached a short term pain threshold in terms of $ weakness and foreign countries are fighting back as they certainly won't wait for...
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December 29th, 2008 at 8:08 pm
At about 5:50 is where the most prescient statements are made: “canary in a coal mine” and “first domino”.
December 29th, 2008 at 9:18 pm
All due respect, where in this report is there an actual explanation of “How Iceland Collapsed”?
No mention of the cod fishing industry. Nothing, really.
Nice music, though.
December 29th, 2008 at 10:40 pm
“first domino”
Yes, that is what I keep wondering about: it seems the other dominoes are all pretty quiet, so are they really in trouble or not?
December 30th, 2008 at 7:35 am
KJ,
it’s been somnolent in Greece, Ukraine…
http://news.yahoo.com/s/ap/20081222/ap_on_bi_ge/eu_ukraine_financial_crisis