Travellers who booked flights direct through XL are not protected by the Government-backed ATOL scheme. But creditors, including Icelandic bank Straumur, will benefit from the sale of shares in XL’s European operations.
Archive for December 8th, 2008
It is barely two weeks until the darkest day of the year, when the sun will only knock on our doors for 3-4 hours.
Egill Helgason, journalist of Silfur Egils has been in the forefront of open discussions about the economic situation, the causes and consequences. His blog is full of news the regular media is to crippled by lay-offs and uncertainty about ownership to handle. His weekly TV show features brilliant analysis by critical people now that he has mostly shown MP´s and reps from the analytics departments of the banks the door.
Today he echoes what many of us are feeling. That in this dire time in our nation´s history, nothing is going to change. The same people are sitting put in government, the same businessmen are tearing apart assets from businesses leaving the debts with the nationalized banks.
Case in point, KPMG in Iceland is supposed to investigate the situation that led to the collapse. The same KPMG that has done the books for Baugur and FL Group in the last few years. The same Baugur and FL Group that have been outed for creating a mess of intertwined companies buying and selling in each other to create artificial worth. The same KPMG whose head is the father of the CEO of FL Group.
A few weeks ago I predicted that the nation would soon split ideologically. Now it might just split altogether into those who bend over and stay, and those who don´t and leave.
A gloomy forecast for a proud country.
Since the ISK was floated last week it has strenghtened considerably thanks to the artificial market created by the East German, sorry Icelandic government and Central Bank.
The media celebrates the fact that those who hold currency debts are seeing their loans decline.
Others have likened the current situation to peeing your pants to keep warm in the cold.
The happiness it brings is artificial and short-lived.
Of 2.500 people recently polled 65.5% say they do not support the government.
If I were a part of Geir Haarde´s and Ingibjorg Solrun´s team of advisors I would focus on the fact that 65.5% of 2.500 people are only 1.637 people. Therefore this can hardly be said to represent the will of the people of Iceland who are as everybody knows 300.000. So only 0.5% of the population is really against the government.
Icelanders have reduced their foreign travel by 60% between years.
Last year I could buy an airline ticket to Glasgow for 23.900 ISK. Now there is no chance of getting one under 46.900 ISK.
A meal that cost under 2.000 ISK a year ago is now around 4.000 ISK.
Economic Disaster Area 