Iceland - the canary in the coalmine

financeguy · 11-23-2008, 01:12 AM

BBC NEWS | Europe | Iceland protest ends in clashes

Take note, class. Nota bene.

Watch Ireland carefully.

U2Fanatic4ever · 11-23-2008, 08:58 AM

isn't this a lyric to a Police song...

purpleoscar · 11-23-2008, 03:00 PM

I saw a news report on CBC that it was popular in Iceland for people to borrow on their home equity to go on vacations. Ouch! I wish people would understand that equity is better than debt.

ntalwar · 11-23-2008, 05:48 PM

Quote:

Originally Posted by purpleoscar

I saw a news report on CBC that it was popular in Iceland for people to borrow on their home equity to go on vacations.

That was common in the US as well. The bigger problem there is that they took out loans for their cars and homes in foreign currencies, and the krona then depreciated against those currencies by a lot. So people owe a lot more on their cars and houses than they are worth in krona. Repos are increasing. There was an interesting quote that Iceland will become like Cuba - currently there are 2008 model SUVs being driven around, and in 30 years the same SUVs will be driving around.

Se7en · 11-23-2008, 05:52 PM

shouldn't they all be dead?

financeguy · 11-23-2008, 05:54 PM

Quote:

Originally Posted by Se7en

shouldn't they all be dead?

How do you mean?

Zoomerang96 · 11-23-2008, 05:59 PM

i riot like it's 1968 in my head all the time.

Se7en · 11-23-2008, 06:03 PM

Quote:

Originally Posted by financeguy

How do you mean?

the canary...its death is the signal.

bad joke, i guess

Vincent Vega · 11-23-2008, 06:06 PM

Quote:

Originally Posted by Se7en

the canary...its death is the signal.

bad joke, i guess

Well, the country is on life support and the question is for how long til it collapses.

Se7en · 11-23-2008, 06:11 PM

Quote:

Originally Posted by Vincent Vega

Well, the country is on life support and the question is for how long til it collapses.

YEA I KNOW IT WAS A BAD JOKE LET IT GO OK?!?!

eat a hot dog.

purpleoscar · 11-23-2008, 06:13 PM

Quote:

Originally Posted by ntalwar

That was common in the US as well. The bigger problem there is that they took out loans for their cars and homes in foreign currencies, and the krona then depreciated against those currencies by a lot. So people owe a lot more on their cars and houses than they are worth in krona. Repos are increasing. There was an interesting quote that Iceland will become like Cuba - currently there are 2008 model SUVs being driven around, and in 30 years the same SUVs will be driving around.

I think the generation affected by this recession will learn to keep their debt to a minimum as a habit from now on.

Vincent Vega · 11-23-2008, 06:22 PM

Quote:

Originally Posted by Se7en

YEA I KNOW IT WAS A BAD JOKE LET IT GO OK?!?!

eat a hot dog.

I was just trying to build upon that metaphor.

And this country doesn't sell Danish hot dogs!

At least not where I am right now.

ntalwar · 11-23-2008, 07:05 PM

Quote:

Originally Posted by purpleoscar

I think the generation affected by this recession will learn to keep their debt to a minimum as a habit from now on.

They have no choice - there is no credit left, and not as many exports to maintain the lifestyle of the last 10 or so years. I read some stat that one third of the population is thinking of leaving the country. This brain drain will further sink the economy.

purpleoscar · 11-23-2008, 09:01 PM

Quote:

Originally Posted by ntalwar

They have no choice - there is no credit left, and not as many exports to maintain the lifestyle of the last 10 or so years. I read some stat that one third of the population is thinking of leaving the country. This brain drain will further sink the economy.

The recession from reports I'm seeing is expected to last 18 months. 24 months is a "technical depression". So this is a steep recession. Having trade open and stay open for 12 months will keep it from being a depression but you could easily see it going in that direction if everyone gets into trade barriers. The population in Iceland is 300,000, so it's like a small town getting huge pressure. A population that size must have little variety in industries. If it gets that bad there I don't blame anyone for moving. All you can do is the best you can. Those who still have jobs should do whatever sacrifice to their lifestyle they can to take care of the basics and pay down their debts ASAP.

Kieran McConville · 11-24-2008, 03:31 AM

I strongly doubt that the US government will allow one third of the population to emigrate. That's where your border controls/homeland security top secret shit come in real useful. And stuff.

I may have mistaken which country is under discussion here. Of course, the point stands even so.

Actually I just realised I'm totally fucking off the page. Nevermind.

11-23-2008, 01:12 AM	#1
financeguy ONE love, blood, life Join Date: Dec 2004 Location: Ireland Posts: 10,122 Local Time: 09:15 AM	Iceland - the canary in the coalmine BBC NEWS \| Europe \| Iceland protest ends in clashes Take note, class. Nota bene. Watch Ireland carefully. __________________

11-23-2008, 08:58 AM	#2
U2Fanatic4ever Blue Crack Addict Join Date: May 2001 Location: nowhere..........man Posts: 20,254 Local Time: 04:15 AM	isn't this a lyric to a Police song... __________________

11-24-2008, 03:31 AM	#15
Kieran McConville ONE love, blood, life Join Date: Dec 2001 Location: Kony Island Baby Posts: 10,081 Local Time: 06:15 PM	I strongly doubt that the US government will allow one third of the population to emigrate. That's where your border controls/homeland security top secret shit come in real useful. And stuff. I may have mistaken which country is under discussion here. Of course, the point stands even so. Actually I just realised I'm totally fucking off the page. Nevermind. __________________

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11-23-2008, 03:00 PM	#3
purpleoscar Rock n' Roll Doggie ALL ACCESS Join Date: Jul 2004 Location: In right wing paranoia Posts: 7,613 Local Time: 01:15 AM	I saw a news report on CBC that it was popular in Iceland for people to borrow on their home equity to go on vacations. Ouch! I wish people would understand that equity is better than debt.

11-23-2008, 05:52 PM	#5
Se7en Rock n' Roll Doggie Join Date: Feb 2001 Location: all around in the dark - everywhere Posts: 3,531 Local Time: 03:15 AM	shouldn't they all be dead?

11-23-2008, 05:59 PM	#7
Zoomerang96 ONE love, blood, life Join Date: Jun 2000 Location: canada Posts: 13,462 Local Time: 03:15 AM	i riot like it's 1968 in my head all the time.