First Country to Declare Bankruptcy Because of the Financial Crisis

News Type: Event — Seeded on Wed Oct 8, 2008 6:40 AM EDT

Article Source: Yahoo! News

world-news, economy, money, bailout, banks, stocks, market, bankruptcy, stock, country, bailouts, iceland, reykjavik, landsbanki

Seeded by newsguru

"Everything is closed. We couldn't sell our stock or take money from the bank," said Johann Sigurdsson as he left a branch of Landsbanki in downtown Reykjavik.

The government had earlier announced it had nationalized the bank under emergency laws enacted to deal with the crisis.

"We have been forced to take decisive action to save the country," Prime Minister Geir H. Haarde said of those sweeping new powers that allow the government to take over companies, limit the authority of boards, and call shareholder meetings.

A full-blown collapse of Iceland's financial system would send shock waves across Europe, given the heavy investment by Icelandic banks and companies across the continent...

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{"commentId":3375173,"authorDomain":"newsguru"}

newsguru

"Everything is closed. We couldn't sell our stock or take money from the bank,"

...a scary thought.

{"commentId":3375173,"threadId":"382562","contentId":"1969066","authorDomain":"newsguru"}

4 votes

#1 - Wed Oct 8, 2008 8:39 AM EDT

{"commentId":3375326,"authorDomain":"seward"}

Sandie Seward

So perhaps it's the end for West Ham United, and Hamleys, and The House of Fraser?

Oh my good god, where's it all going to end???

{"commentId":3375326,"threadId":"382562","contentId":"1969066","authorDomain":"seward"}

5 votes

#2 - Wed Oct 8, 2008 8:49 AM EDT

{"commentId":3375490,"authorDomain":"ghetto-otaku"}

AfricanMadman

Sandie....? let me paint this picture.....

*A picture of Uncle SAM backed into a corner, while in front of him, THOUSANDS of hands from around the world are grabbing and clawing at his clean blazer and pants.....*

It's started with us, and it will END with us.....

{"commentId":3375490,"threadId":"382562","contentId":"1969066","authorDomain":"ghetto-otaku"}

4 votes

#2.1 - Wed Oct 8, 2008 8:58 AM EDT

{"commentId":3389459,"authorDomain":"inghar2004"}

gladbutterfly

We may be back to barter soon, if that sort of thing comes to pass here, and I am not too hopeful that it won't.

{"commentId":3389459,"threadId":"382562","contentId":"1969066","authorDomain":"inghar2004"}

4 votes

#3 - Wed Oct 8, 2008 6:53 PM EDT

{"commentId":3390168,"authorDomain":"ghetto-otaku"}

AfricanMadman

neither am I......

{"commentId":3390168,"threadId":"382562","contentId":"1969066","authorDomain":"ghetto-otaku"}

4 votes

#3.1 - Wed Oct 8, 2008 7:34 PM EDT

{"commentId":3394899,"authorDomain":"energynet"}

energynet

There are just too many terrifying stories out there on NV! One day I get a hundred stories in my tracker, the next there are 900.

I've now seen at lest 4 different stories in the last 3 days all of them talking about just how much more money is lost because the way the fed as been giving out money, huge new government packages, including a huge pentagon budget, another satellite survellance program as big as the pentagon budget and of course the bailout. Then I hear that there were no public hearings on the bailout, which is a first and that the media has yet to cover the details of how the democrats supposedly just gave away the country to the richest of the rich.

But probably the scarriest of all the stories was about the impacts of all the new money being thrown into the economy not to mention another drop in fed's rates.

Has anyone seen a clear story about the inflationary impact of all the money being injected into the system yet? IF this youtube vid is half true we is in big trouble..

{"commentId":3394899,"threadId":"382562","contentId":"1969066","authorDomain":"energynet"}

5 votes

#4 - Thu Oct 9, 2008 3:54 AM EDT

{"commentId":3410532,"authorDomain":"georgejpp"}

BCgeorge

my inalterable fears are still that some ruthless, self-serving individuals caused these horrendous problems and may yet profit greatly from them and the suffering of others.

{"commentId":3410532,"threadId":"382562","contentId":"1969066","authorDomain":"georgejpp"}

2 votes

#5 - Fri Oct 10, 2008 12:21 AM EDT

{"commentId":3413039,"authorDomain":"ghetto-otaku"}

AfricanMadman

If not already.....

{"commentId":3413039,"threadId":"382562","contentId":"1969066","authorDomain":"ghetto-otaku"}

3 votes

#5.1 - Fri Oct 10, 2008 8:27 AM EDT

{"commentId":3419778,"authorDomain":"georgejpp"}

BCgeorge

banks and other financial lending institutions are invariably private corporations with a board of directors and shareholders. capitalism. the shareholders invest and want to see returns on their investments, the more return the better. ROI, return on investment, is the raison d'etre of a corporation notwithstanding the possible lofty mission statements. the shareholders will presumably democratically elect a slate of directors who will then hire or appoint executives that they qualify as capable of performing the will of the shareholders. renumeration is often based on performance, or contains pre-determined bonuses for achieving profit goals. the more profit the better. more profit will usually increase the market value of the individual shares, and of course raise the salaries, bonuses and perks of the executives. everyone is happy, the governments are happy too, since they are, or should be, collecting taxes.

it has become obvious in the past few weeks that many financial institutions have made countless questionable, poorly computed or improper loans and mortgages. hundreds of billions of dollars of them in all probability. it may have looked wonderful on paper at one time, now not so much. fiscal irresponsibility. many executives appear to have been renumerated on the basis of these worthless, or nearly worthless loans. it is unlikely that the chief executives accepted and approved each individual loan or mortgage, so there had to have been internal direction and policy. if this is the case why isn't the government investigating the actions of the companies and controlling individuals and seeking to recover as much money as possible. it seems to me that the nation's taxpayers are owed that much.

{"commentId":3419778,"threadId":"382562","contentId":"1969066","authorDomain":"georgejpp"}

2 votes

#5.2 - Fri Oct 10, 2008 2:25 PM EDT

{"canLink":false,"threadId":"382562","isPrivate":false}

Iceland government seizes control of Landsbanki	Guardian Unlimited	Tue Oct 7
Iceland announces Russian loan, nationalizes bank	Associated Press	Tue Oct 7
Iceland suspends stock trading, creates new bank	Associated Press	Tue Oct 7

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First Country to Declare Bankruptcy Because of the Financial Crisis

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