Great post from Gonzalo Lira here: http://gonzalolira.blogspot.com/2010/12/want-to-ruin-your-own-country-assume.html
My mouth was watering while reading this. I'm just thinking of the oppourtunities it'll bring. Oppourtunities that only come along every few generations. For me, reading this is like throwing wounded fish in a shark tank. Sure it's gunna get ugly... but it'll be exciting too!
What was that bit about Bernnake's lip quivering & crying himself to sleep in that 60mins interview?...I must've missed that, It seemed to me he had no idea of the $h!tstorm he was responsible for!
This is interesting because I've been thiking for a long time that america failed its self morally by bailing out the banks. I always thought they should be left to fail, teaches people the wrong lesson. I think there is a useful place for the government in this and it is to garentee the money of the depositors to stop them from doing a run on the bank. apart from that let them burn.
Going through this article. Now I understand what Benny D is talking about. http://gonzalolira.blogspot.com/2010/08/how-hyperinflation-will-happen.html Slam
He say that iceland came good after not supporting the banks and taking the consequences,because investment dollars flooded in after a while(low currency,etc). But if everyone else did that there would be no investment dollar to come in. ( i don't support bailing out the banks)
Yeah, I remember that referendum and the images of the angry mobs in the streets with nooses and burning effigies of the politicians that supported the bailout. There were some angry Vikings man!
The thing about Iceland is the population number just over 300,000. It's like a big country town. Yet they had sooooo much debt. At the height, the debt on their banks books was 6 times GDP! Debt was over $100 billion! That averages to $333,333 for every citizen.
I love this illustration of what happened, It's the OMX Nordic Icelandic Exchange, (the Icelandic Equivalent of the ASX)..it goes up to Oct 2008. from Wikipedia Surely at around 2004/2005 at least some icelanders would've be thinking, hang-on... we're on a barren rock in the atlantic ocean with little more than fishing and volcanoes going for us, somethings wrong here, I'd better take precautions!?
Given the huge drop and the potential current recovery talked about in the article, perhaps the Icelandic stock-market is now presenting some buying opportunities for those in Europe brave enough to take a look?
Cheap real estate? Cheap fishing boats? It has become a very cheap party destination for weekends - but the locals can't afford to visit the bars since all are priced in Euros. A classic example of how PMs would have protected wealth.
That Ben Bernanke interview was a big JOKE! It was clearly a propaganda machine. It was a controlled interview with pre-designed questions and agenda. How come the interviewer never asked why the Fed "Lended" 3.3 trillion dollars to foreign companies when USA is broke and debt at record high!? Bernanke said the Fed didn't print money... Are you kidding me? Then why M3 money supply growing exponentially? Inflation under 2%, is he a clown??? Why commodity prices sky rocketing? He lied in almost ALL of the answers he gave in the interview. This guy is unbelievable!
