Iceland Prime Minister's doomer speech ...

[Ludwig]

I fear that we may indeed be next, and I know that we should not laugh at suffering, but it can be funny when it happens to other people, especialy those who until recently appeared so prosperous and confident.

I am sure most of these prosperous Icelanders were decent people who were simply sold a lie, just as we have been in the UK.

I am rather disturbed at the smug Schadenfreude being displayed by some people here, who seem confident of their moral superiority either because they're not prosperous themselves (envy?) or because they think they've been clever enough to avoid the same fate as the Icelanders, which I doubt very much indeed.

I'm sad if you think suffering can be funny. I think that says a lot about the kind of society we've become.

Apologies if that all sounds pious but I feel strongly about it. Maybe when it's your turn to suffer you'll wish other people were helping you out rather than laughing at you.

[kenneal - lagger]

The lights are going out in Iceland ...

That's the major difference between us and them. They have masses of renewable energy so their lights probably won't be going out.

[Adam1]

There is an English language Icelandic news site here: http://www.icenews.is/

One of the stories there is about the effect on the Norwegian Sovereign oil fund, which as lost all of the gains it had made in the last 10 years, during the stock market crash:

In a crippling ripple effect of the Wall Street market meltdown, Norway’s special “oil fund” may have lost nearly all of its profits garnered over the last 10 years in the space of a few months. A decade ago, the government invested around NOK 1,000 billion in the stock market. Steep drops in the market this year have potentially wiped out all of the wealth fund’s gains.

Economists suggest that the sovereign wealth fund would have more money in it today had the government simply placed the cash in the bank. The newspaper Aftenposten figures that at the end of 2007, the oil fund had earned NOK 302 billion over the first 10 years since it was established. By June 2008, the fund’s gains had been cut to NOK 165.

Although Norway’s central bank managers aren’t commenting yet on third quarter losses, Aftenposten estimates that the oil fund has lost a further NOK 175, effectively erasing all profits earned over the last decade. The oil fund discloses its true holdings only once a year and the third quarter figures won’t be posted until 25 November. Should the losses be accurate, it would be a staggering blow to Norway’s fund, which invests much of its money in sustainable, morally-conscious projects.

[Totally_Baffled]

Will the UK really be next?

I though the issue with Iceland was that the banks bail out requirements were potentially 8 * Icelands GDP.

Britains exposure is nowhere near that?

The largest number I have seen is £400 billion which is only 33% of GDP. And most of that will be recovered (well maybe... )

[Jibberjabber]

I don't think we will be next. But it seems pretty likely that we won't be too far behind.

Gordo and his pals threw the kitchen sink at this, and they claim they waited so long so they could get it just right. Working through the night with all the best minds and banks telling them what the problems are. International co-operation, simply enourmous amounts of money and promises of "Whatever it takes" from all parties. Well, just look at how well that went. A one day rally in some truely battered bank stocks and a 7% loss on the DOW.

Panic selling has set in around the globe, so called psycological barriers are being breezed through like they are not even there. The markets no longer care what governments are saying. The pound is tanking, our banks are all broke and so is our Government.

Have we got anything left to throw, something that would make any difference. ?? I don't think so.

So how long have we got? I believe the derivitives start to make their way into the picture tommorow, and the yen carry trade is in danger of going boom. They are now not allowed to ban the short sellers for a month without passing a new law. And that didn't exactly help anyway.

In my opinion we will be lucky to get to next month with anything that looks like the world today.

[energy-village]

Well, just look at how well that went. A one day rally in some truely battered bank stocks and a 7% loss on the DOW.

I wouldn't say the plan had failed yet. According to the FT (if it succeeds) it will be a slow process ... 3 months before there's a significant difference.

Don't ask me how it is supposed to pan out though, I don't even know how the can opener works (as Woody Allen would say).

[Andy Hunt]

I just need one more month to get the portable wind turbine I want, and get a PV panel installed on my back wall.

One more month . . . < crosses fingers >