The wonderful world of an economic disaster

Tonight, Vesteinn Gauti Hauksson, self proclaimed “little guy from Hafnarfjordur” was interviewed on Kastljos, the State Broadcasting Company’s nightly talk show.

Vesteinn and his wife have decided to stop paying off their home loans. They have been trying to sell their apartment for 35 million ISK while they have loans of 28 millions. With 20% inflation, the loan will soon be 35 million ISK.

Vesteinn has calculated all possible outcomes and he has found that the cheapest way to survive being a home owner in Iceland is to let the bank auction off the home and pay back the difference, even if it is several millions. And from that point onwards, rent their apartment.

Meanwhile Bjorgolfur Thor and Bjorgolfur Gudmundsson are waiting in the wings to re-invest in the Icelandic economy. Their company Samson is bankrupt, the state has taken over their bank, Landsbankinn but their company Samson is still the owner of Iceland’s strongest investment bank Straumur. They are investing 40 million Euros in a fund which is supposed to part-take in the revival of the Icelandic economy.

Confused? Well, Samson Global Holdings is not Samson. So unlike Vesteinn, the “little guy from Hafnarfjordur” who will end up paying all his debts, Björgolfur and Bjorgolfur Thor got rid of theirs courtesy of the taxpayers of Iceland. And got to keep their assets.

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2 Responses to “The wonderful world of an economic disaster”


  1. 1 Kjartan December 4, 2008 at 10:12 pm

    What kind of talk is this?! You’re obviously a card-carrying communist. Go back to Russia, you godless red!


  1. 1 purpose of world bank | Digg hot tags Trackback on December 4, 2008 at 9:56 am

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