Glitnir Bank

Glitnir Bank (not pictured as it’s building is far less interesting to look at) was effectively taken over by the Icelandic government.

You can read about it here, here and here.

I have written about Iceland many times, invested there, made a little money, lost a little money and have been out for a while.

The GDP in Iceland was $11 billion in 2006 so the €600 million is a very big number but they obviously feel this must be done.

I continue to be long term optimistic (but again, no position for quite a while) because among other things Iceland essentially has free energy (except for gas for cars) which makes it an attractive place to set up shop for a global business, especially certain types of manufacturing and data centers.

The country was on the path to greater global relevance and so it appears to be set back by some number of years. A bad period of time? Yes. Permanently flushed? Not likely.

5 Comments

  1. We had a bad year in the market today.

    Reply
  2. Speaking of banks (or bank pictures) . Any thoughts on Fortis, who didn’t seem to have a connection with the mortgage market, failing?

    Is it just a situation where they took on too much debt after the ABN Amro buyout and didn’t maintain a good debt to capital ratio?

    I didn’t know that the European Central Bank apparently isn’t allowed to step and fix solvency issues.

    Reply
  3. I hope all the people opposed to the bail out plan enjoyed todays markets…

    Reply
  4. It wasn’t fun but I think it will be a better program next time and its worth waiting.

    Reply
  5. I don’t think we’ve seen the light at the end of the tunnel yet. It will be even harder for foreign countries to get out of this credit crisis.

    Reply

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Glitnir Bank

Glitnir Bank (not pictured as it’s building is far less interesting to look at) was effectively taken over by the Icelandic government.

You can read about it here, here and here.

I have written about Iceland many times, invested there, made a little money, lost a little money and have been out for a while.

The GDP in Iceland was $11 billion in 2006 so the €600 million is a very big number but they obviously feel this must be done.

I continue to be long term optimistic (but again, no position for quite a while) because among other things Iceland essentially has free energy (except for gas for cars) which makes it an attractive place to set up shop for a global business, especially certain types of manufacturing and data centers.

The country was on the path to greater global relevance and so it appears to be set back by some number of years. A bad period of time? Yes. Permanently flushed? Not likely.

Submit a Comment

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