Friday, October 17, 2008

Iceland and money

october 17 2008

The financial crisis reveals the stupidities of councils and other organisations.

Iceland has been hit very bad and some banks just died, leaving people and organisations with only the proof of their deposit.

A couple of councils here have put their money on those icelandic banks, and I've heard that some englisgh councils and governmental organisations have done the same.
The district of Kent deposited 65 million euro and the organisation that runs the busses and metros in London 50 million.

Nearby a council sensed things were not going well and they requested their money to be deposited on another bank.
They had to wait for news and when it came in it was clear they had been lucky.
That council is able to renovate and built the schools as planned, and are able to repair roads when needed. But many councils have to postpone these necessary improvements.

Today I heard that many British non-profit organisations followed the advice of the English government to use foreign banks.
The National Council for Voluntary Organisations estimated that at least 60 organisations lost about 120 million pounds.

The relationship between Iceland and England didn't improve at all when the english used the anti-terrorist laws to freeze the icelandic assets in the UK, causing problems for the large bank Kaupthing.

I'm curious how matters will be solved. Iceland already had huge financial troubles and now they're only bigger.


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