Posts Tagged ‘Bagur’

Icelandic Banking: Full of fail

March 8, 2009

Here’s an excellent article from Vanity Fair about the Icelandic banking system.

It’s a 7 page article that gives insight into what happened in Iceland, how they came about banking, and how they approached it.

The author seems to have some bias against Iceland, but the article is still good nonetheless.

Some interesting points:
– The Gov’t regulates fishing. Each fishermen are given a limit of how many fish they can catch per season. That limit can be used as collateral to get a loan from a bank. ( i found that interesting )
– Icelandic male & females have an odd chemistry
– Icelandic banks bought companies they knew nothing about
– The folks in charge of financial services in Iceland had no financial background. Many were fishermen who randomly started trading
– Iceland pays their youth to study abroad and to get PhDs. Upon coming back to Iceland, they couldn’t find a use for their PhDs.

It is really interesting to see how their mentality costed them a nation.

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