Open books

It would be nice if one of the things that can be agreed on in “New Iceland” is that political parties running for office do so with their books open. 

Why should anyone want it to be a secret who their financial supporters are?

David’s discrepancy

In a famous appearance at the Chamber of Commerce in November David Oddson claimed that he had foreseen the whole shebangs in the economy but no one had listened. Hallgrimur Thorsteinsson quotes David as reading doomsday predictions at the meeting in November from a report the Central bank had made after a visit to London in February. 

But he wonders how the same David could utter the following in a speech at the Central Bank’s annual meeting three weeks after the trip to London. 

“The Icelandic banking system and economic matters stand on solid ground though currently faced with tough winds. Systematic abolition of restrictions in commerce in the last fifteen years or so, privatization, systematic tax-reductions and the globalisation of Icelandic business has brought us enormous profits and laid the foundations for a new upturn in the coming years. We will without hesitation continue on the same pathe when we have worked our way out of the temporary difficulties we are facing now. “

Nobel prize winner blasts IMF over loans

“They are making the same mistake they were making in 97,” Stiglitz, a former chief economist at the World Bank, told reporters in Paris on Tuesday, referring to loans given to Iceland,  Pakistan and Ukraine to cope with the financial crisis.

From Unian.net

Dilbert

Dilbert is having a field day with the economic situation.

Another Icelandic Crisis: And Yet, the Krona Doesn’t Seem to Care

So let’s look at why the krona actually gained strength. You see, when the Prime Minister (Geir Haarde) resigned that day, the market got some hope that change could now come.

While currencies usually hate any major changes, it’s a bit different when those changes promise to fix a broken economy. In other words, Forex traders believe a new political situation in Iceland could actually help the economy. And the krona benefited from this belief.

From World Currency Watch

Dangers of a leftist government

Egill Helgason puts it perfectly…

“If there is a leftist government then: 

– the currency will crumble

– the stock market will go down

– the banks will not survive

– money will be transferred abroad

– people will lose their savings

– inflation will run wild

– government will expand

– taxes will be raised

(oops all of this has already happened)”

Iceland cbank change is key in new plan-president

Iceland’s president said in a BBC interview on Tuesday that a change in central bank leadership was one of the “pillars” of a new political platform that is being forged following the collapse of a ruling coalition.

From Reuters