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Following Major Losses, Norway Sovereign Wealth Fund Hits "Infinity" Pares Exposure To Greek Debt

Tyler Durden's picture


Back in September 2010, Norway's sovereign wealth fund, the second largest in the world, decided to be contrarian for contrarianness' sake, and announced it had "stocked up on Greek debt, as well as bonds of Spain, Italy and Portugal. Finance Minister Sigbjoern Johnsen says he backs the strategy, which contributed to a 3.4 percent loss on European fixed income in the second quarter, compared with gains on bonds in Asia and the Americas." The explanation was one that not even the high priests of obfuscation and lies back in the US, which only invest in "maturity" could come up: "“The point is, do you expect these guys to default?” said Harvinder Sian, senior fixed-income strategist at Royal Bank of Scotland Group Plc, in an interview. “Norway has taken the view that they will not. The Greek holdings are particularly interesting because the consensus in the market is that they will at some point restructure or default. Norway says its long-term perspective will protect it from losses. “One could say we are investing for infinity,” Johnsen said in an Aug. 27 interview. “It is important when you look at the time scope of the fund and the investments that there should be a portion of active management." Less than a year later, infinity appears to have finally arrived. The FT reports that the fund "recently announced plans gradually to reduce exposure to Europe, which currently accounts for half its equity holdings, as part of efforts to increase diversification but Mr Slyngstad said the fund remained bullish about the region in the long-run. However, he acknowledged the “enormous challenge” facing eurozone policymakers and voiced concern over the potential repercussions of a possible restructuring of Greek debts. “It is difficult to see all the secondary effects of such a move and therefore I think there will be a lot of caution before any such decisions will be taken,” he said." But, But... Didn't they say just 9 months ago that there was no risk of Greek default? Perhaps it is a good thing nobody actually holds these gentlemen, or anybody else for that matter, accountable for the outright stupidity they tend to spout on way too many occasions.

More on revisionism 101, and the associated spin of course:

The fund lost nearly a quarter of its value in the market turmoil of 2008, sparking debate in Norway over its investment strategy. All the losses have since been recovered but the fund last year began a push to diversify beyond debt and equity with a £450m real estate investment in London’s Regents Street.

Mr Slyngstad said that, while there would be more real estate deals in future, the fund was taking a cautious approach. “We are not overly enthusiastic about the real estate market for the moment so we are… doing this at quite a slow pace.”

He said the fund would consider further diversification into the infrastructure sector but insisted there were no current plans and highlighted the operational and political risks of such investments.

Norway set up the fund in 1990 to preserve the country’s oil wealth for future generations and guard against inflation by limiting the amount of oil revenues released into the domestic economy.

With assets of NKr3,102bn at the end of the first quarter, the fund is worth about $116,000 for every member of Norway’s 4.9m-strong population.

Just over 60 per cent of the portfolio is in equities and just under 40 per cent in fixed income securities. The fund, overseen by the Norwegian finance ministry, won permission last year to invest up to 5 per cent of its assets in real estate.

In other words, should the central planners fail in their latest attempt to prevent the market from hitting fair values more than halfway lower from here, Norway will be merely the latest entrant in the club which converted hard assets into paper profits and realized losses. As for Greece: its CDS just hit north of 1,600. An all time wide.


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Mon, 06/13/2011 - 10:37 | 1364715 Mae Kadoodie
Mae Kadoodie's picture

An idiot says, what?

Mon, 06/13/2011 - 10:43 | 1364744 idea_hamster
idea_hamster's picture


Mon, 06/13/2011 - 13:56 | 1365291 MarketTruth
MarketTruth's picture

Barnum was right, one is born every minute in Norway.

Mon, 06/13/2011 - 14:04 | 1365315 GoinFawr
GoinFawr's picture

Well it must be by the millisecond in the US then:

Mon, 06/13/2011 - 14:40 | 1365441 friendly manitoba
friendly manitoba's picture

might have been  moral suasion and support by norway  - even i buy stuff that may not appreciate but has important consequences in making the world a better place  - a lot of greed in this world where you cant take it with you  -  i remember the day in 1929  j p morgan walked out on the floor and started buying .. doesnt make him a fool in my mind 

some of you posters are wound up pretty tight ...



Mon, 06/13/2011 - 16:47 | 1365748 Djirk
Djirk's picture

these guys bought US equities when everyone was running away with their tails between their legs....not sure if they took profits but they made a lot of paper profits on that call.

Mon, 06/13/2011 - 11:01 | 1364796 Manthong
Manthong's picture

An idiot says it's transitory.

Mon, 06/13/2011 - 11:47 | 1364914 Clayton Bigsby
Clayton Bigsby's picture

I've heard it said the definition of an "investor" is a trader who's underwater - guess these guys are "investors"

Mon, 06/13/2011 - 14:30 | 1365178 GoinFawr
GoinFawr's picture

heh, "underwater", you guys kill me. A whopping 3.4% loss on a portion of their portfolio and you guys are all over it like stink on shit.

You just can't stand to see a mixed economy doing so damn undeniably brilliantly, can you? For you, avoiding mirrors while jumping on any trivial negative news elsewhere is the way to go; oh yeah, definitely...(sarc)

Tylers, thanks for posting this and flushing out all the pigeons... anyone for squab?

Mon, 06/13/2011 - 13:53 | 1365276 Ying-Yang
Ying-Yang's picture

"At the end of the day", Infinity is sooooo Transitory

Mon, 06/13/2011 - 10:37 | 1364716 I am a Man I am...
I am a Man I am Forty's picture


Mon, 06/13/2011 - 10:58 | 1364789 TruthInSunshine
TruthInSunshine's picture

Anyone up for a game of Financial Weapon of Mass Destruction Dominos?

These are the special kind of dominos, each one containing derivative products that implicate many other derivative products.

Think of a waterfall of continuously falling razor blades - death by a thousand (or trillions of) papercuts...something along those lines.

Mon, 06/13/2011 - 13:31 | 1365214 GoinFawr
Mon, 06/13/2011 - 10:35 | 1364720 Bay of Pigs
Bay of Pigs's picture

One could say we are investing for infinity

Huh? That's a unique approach...

Mon, 06/13/2011 - 10:40 | 1364735 lizzy36
lizzy36's picture

One should remind these Sock Puppets that on a long enough timeline the survival rate for everybody drops to zero. #infinity

Mon, 06/13/2011 - 10:46 | 1364739 Fancy Bear
Fancy Bear's picture

Warren Buffet always said his favorite holding period is forever.

Mon, 06/13/2011 - 11:02 | 1364798 Mentaliusanything
Mentaliusanything's picture

Tell Buffet I have some Enron shares he can hold for ever (or wallpaper his toilet with)

Mon, 06/13/2011 - 13:45 | 1365260 knukles
knukles's picture

Thanks Fancy, for as I was reading the above piece, the phrase "investing for infinity" squared up philosophically and mathematically with the idea of default, of getting naught back.
Like the discounted present value of nothing and any discount rate (perhaps a negative number and therein we approach the extent of the QE efforts) is nothing for infinity.  Cute.
Or, not considering the interim value of an investment between now and infinity seemingly abrogates a considered state of social responsibility commonly enshrined in the law, referred to as "fiduciary responsibility."


Ah, the flimsy ruminations and justifications of the asset manager trapped in a loosing position, embalmed within his own poisonous ego.

Mon, 06/13/2011 - 10:35 | 1364721 williambanzai7
williambanzai7's picture

What a marooooooon--Bugs Bunny

Mon, 06/13/2011 - 11:16 | 1364807 Mercury
Mercury's picture

+1 !

Lots of financial comedy on display in that Ali Baba Bunny

Mon, 06/13/2011 - 10:40 | 1364725 carbonmutant
carbonmutant's picture
Little too much Akvavit...
Mon, 06/13/2011 - 10:42 | 1364728 Hedgetard55
Hedgetard55's picture

They should have at least 20% in precious metals, merely as insurance.


Norwegian krone is a solid currency, relative to
Euro and dollar.

Mon, 06/13/2011 - 11:49 | 1364910 uranian
uranian's picture

norway sold all of its gold in 2004:


feee faan. or something.

Mon, 06/13/2011 - 12:06 | 1364951 zaknick
zaknick's picture

The Norwegian elites are banksters to the core. Northern Norway is where the banksters have built the doomsday seed vault. The same ones who own the GMO monster. Why would they store all the different seeds of the world in a vault inside a mountain?

Mon, 06/13/2011 - 12:20 | 1364978 old naughty
old naughty's picture

...and under a sheet of ice, in case aircond malfunctioned!


FEMA N. of the 33 parallel.

Mon, 06/13/2011 - 13:06 | 1365145 uranian
uranian's picture

there's also the world's only other HAARP-type facility up there, EISCAT.

Mon, 06/13/2011 - 13:46 | 1365265 knukles
knukles's picture


Now, I have to ask myself, for WTF do the Norwegians want or need an upper atmospheric heater?

Ah hah!

Another one of those inexplicable coincidences.

Mon, 06/13/2011 - 13:11 | 1365148 Saxxon
Saxxon's picture

Sure, sell all gold and load up on PIIG debt.

A 25% loss in a fund like this is unconscionable.

Another nation whose beaurocrats are Eunuchs busy humping the pants leg of the ECB.

Mon, 06/13/2011 - 13:58 | 1365192 GoinFawr
GoinFawr's picture

Is it just me or did you just turn a 3.4% (current) loss on a portion of the fund into a 25% (unrecovered) loss on the whole shebang? Hocus pocus!

You want 'unconscionable'? Have a look at this:

Mon, 06/13/2011 - 10:57 | 1364729 hedgeless_horseman
hedgeless_horseman's picture

Perhaps it is a good thing nobody actually holds these gentlemen, or anybody else for that matter, accountable for the outright stupidity they tend to spout on way too many occasions.

Reminds me of this scene (I know, Sweden, Norway, same difference):

My dear friends, for 22 years, in the capacity of [Soveriegn Wealth Fund] manager, I've stood here and made a speech without really having any talent for that sort of thing. Especially if you think of my father who was brilliant at speeches. My only talent, if you can call it that in my case, is that I love this little world inside the thick walls of this [Soveriegn Wealth Fund], and I'm fond of the people who work in this little world. Outside is the big world, and sometimes the little world succeeds in reflecting the big one so that we understand it better. Or perhaps, we give the people who come here a chance to forget for a while, for a few short moments, the harsh world outside. Our [Soveriegn Wealth Fund] is a little room of orderliness, routine, care and love.                                             

                                              -Oscar Ekdahl

                                               Fanny and Alexander

                                               Directed by Ingmar Bergman

Mon, 06/13/2011 - 13:02 | 1365129 GoinFawr
GoinFawr's picture

If those Norwegians are 'stupid'

what does that make Americans? Vegetable matter?

Mon, 06/13/2011 - 10:42 | 1364741 Cthonic
Cthonic's picture

On a long enough timeline, you'll never reach infinity...  Zero cred, Mr. Slyngstad.

Mon, 06/13/2011 - 10:45 | 1364742 Mercury
Mercury's picture

Norway says its long-term perspective will protect it from losses.  One could say we are investing for infinity,

What the hell does that mean? - on a long enough time line the principal recovery rate for everyone rises to 100% ??

I don't think so.

Mon, 06/13/2011 - 10:52 | 1364752 plocequ1
plocequ1's picture

To find out what it means, You sometimes have to play it backwards like Revolution 9 from The white Album.

Mon, 06/13/2011 - 11:59 | 1364935 LoneCapitalist
LoneCapitalist's picture

" Turn me on Fed man"

Mon, 06/13/2011 - 13:13 | 1365161 Saxxon
Saxxon's picture

lol LoneCapitalist.

Mon, 06/13/2011 - 10:43 | 1364745 THE DORK OF CORK
THE DORK OF CORK's picture

Most goverments now do what they are told by the priestly class - they have no independence.

In a Gold Standard world we would not have these absurd sovergin wealth funds and their useless inefficient transfer of symbolic Energy/Money.

The size of the financial parasitical class used to maintain these fictions is beyond absurd now.

Mon, 06/13/2011 - 11:07 | 1364788 GoinFawr
GoinFawr's picture

Uh, I think your extrapolations may need some work.

"The fund lost nearly a quarter of its value in the market turmoil of 2008, sparking debate in Norway over its investment strategy. All the losses have since been recovered..."

I'm not sure the people of Norway agree with you on those first and last points of yours Corky. While the fund shrunk in 2008, it's worth noting that it didn't 'go negative'. Notice there is "debate" on what direction to take, that's an understatement; Norway's SWF is open to public scrutiny and its managers are held accountable, which keeps things as honest as possible.

'Absurd'? How did you come up with that? Look how the country as a whole fared in 2008...

But yeah, when you mess with paper you need to watch out for lit matches.

Mon, 06/13/2011 - 11:27 | 1364835 THE DORK OF CORK
THE DORK OF CORK's picture

Go negative in what unit of account ? maybe in 2008 Gold but only 2008

The classical gold standard was a product of capital static but productive coal based economies.

The collapse of that system under the pressure of 2 world wars was a direct result of the more fluid nature of economies as oil became the premier energy source for Navies and everything else in the transport sector.

This is about Poltical Power, not about investment returns

Mon, 06/13/2011 - 11:53 | 1364881 GoinFawr
GoinFawr's picture

I'll agree that one way to maintain political power is to keep balanced books while providing services like education and health care that are second to none... I'd vote for that administration too, every time. SWF's seem to be one way to do it. 2008 is such old news, check the link for how they fared last year.

(scroll down to 'Debt and Deficit' and see where Norway stands in a league all its own.)

Mon, 06/13/2011 - 12:13 | 1364957 THE DORK OF CORK
THE DORK OF CORK's picture

No you don't get my point - they are denied Gold ownership in their sovergin fund because in this world of Oil dependence a Gold standard or a high freegold price would transfer most power to countries by nature of their Geology alone.

Americas default of 71 was logical from their perspective - Norway like every other country is compelled to play ball with power.

 Balanced books can be balanced easily when you have a oil surplus.

In this world of the Oil Spice the priestly class have the power alone to smooth the gears of commerce and power politics - hence their dominance in all spheres.

Mon, 06/13/2011 - 15:47 | 1365022 GoinFawr
GoinFawr's picture

At one point the US had an oil surplus too, yet I don't recall any balanced books... Canada, tiny population compared to its massive natural resources; aren't they currently exporting more oil than they import? Yet they run deficits too... (Hint: look for the GS alumnis at Central Banks, and 'Conservatives' in the majority-25% of eligible voters can't be wrong!)

Ok, though. I see your point about the gold. Sure, Norway is compelled to play ball, but they play for their own team and judging by performance they're ringers.

A 3.4% loss (they were likely coerced into eating) on a portion of their capital is hardly a reason to throw the baby out with the bathwater, anyway.

Mon, 06/13/2011 - 17:00 | 1365780 Armando Javier ...
Armando Javier Finkeltein of the Boise Finkelsteins's picture

Norway is a small country with 4.9 million with about 7 or 8 blacks, natives and Pakistanis.  The only thing they have is oil and a tradition of surrendering.  They are one of the few countries that do not have a culture.


Vidkun Quisling




Mon, 06/13/2011 - 18:05 | 1365979 GoinFawr
Mon, 06/13/2011 - 10:47 | 1364757 Dick Darlington
Dick Darlington's picture

Maybe they shud actually start doing some own analysis instead of reading the overly optimistic "research reports" coming out of the banking cartel and base their decisions on those. The same analysts who have recommended buying all and any peripheral bonds throughout the crisis have not stopped doing so even 3 countries have already fallen off the wagon. Quite a track record... Or then again, they must do their "analysis" on an infinite time horizon so default here and there along the way is no biggie.

Mon, 06/13/2011 - 10:47 | 1364758 urbanelf
urbanelf's picture

I'm starting a hedge fund with the strategy of placing bets on Roulette hedged by bets on Craps.  Any takers?

Mon, 06/13/2011 - 10:55 | 1364782 Sudden Debt
Sudden Debt's picture

I'm guessing you have a bulletproof system SO PUT ME IN FOR 50K ON RED!

and if it goes bad, just write me some IOU's for the tripple of the amount untill it goes red...


Mon, 06/13/2011 - 10:51 | 1364759 ATM
ATM's picture

They did it on purpose.

Mon, 06/13/2011 - 10:52 | 1364762 Caviar Emptor
Caviar Emptor's picture

The parade of stuck perma-bulls is  getting could this be? We followed Buffet's advice and listened to Jack Welch and bet the farm on Helicopter Ben! This can't be happening!

Mon, 06/13/2011 - 10:49 | 1364763 rufusbird
rufusbird's picture

I guess this tells us they don't think they can safely insure their position with credit-default swaps...? I guess they don't share Wall Street's enthusiasm for the products...

Mon, 06/13/2011 - 10:58 | 1364769 dwdollar
dwdollar's picture


I didn't realize infinity is equal to 9 months.  Somebody get a physicist on the phone.  We have a major breakthrough that could change the world.

These bankers deserve every penny they lose and subsequently write off to the US taxpayers.

Mon, 06/13/2011 - 10:55 | 1364776 Mallenet
Mallenet's picture

Norway, at least until this 'enlightenment', was a State that appeared to big and successful to fail - perhaps that is the root problem - they got too cock-sure of themselves (a common by-product of success): lets hope they learn something of value from this mis-adventure.

Mon, 06/13/2011 - 11:57 | 1364940 GoinFawr
GoinFawr's picture

Well, if they wanna be Greece those Norges have a helluva long way to go yet.

Mon, 06/13/2011 - 10:55 | 1364780 ambrosiac
ambrosiac's picture


     Let's play some music to this.


Ashbury Heights -- Eternity at an End

Mon, 06/13/2011 - 10:58 | 1364790 richard in norway
richard in norway's picture

fØck there goes my pension

Mon, 06/13/2011 - 11:05 | 1364794 Franken_Stein
Franken_Stein's picture




Mon, 06/13/2011 - 11:02 | 1364801 Franken_Stein
Franken_Stein's picture


Don't worry about the gnat's droppings on the O, the janitor is gonna take care of this.


Mon, 06/13/2011 - 11:06 | 1364800 Internet Tough Guy
Internet Tough Guy's picture

Pickled herring is yummy.

Mon, 06/13/2011 - 11:10 | 1364811 richard in norway
richard in norway's picture

good for you too

Mon, 06/13/2011 - 11:52 | 1364920 uranian
uranian's picture

tried the rotting fish? now there's a national delicacy. or you could just dehydrate it, then rehydrate it in lye (you know, that stuff you clean floors with). sheep's head on toast maybe? makes haggis look positively civilised.

Mon, 06/13/2011 - 13:01 | 1365126 richard in norway
richard in norway's picture

don't knock the sheep's head, its yummy. but you need to eat the eyes first, unless you don't mind your food watching you eat

Mon, 06/13/2011 - 13:07 | 1365152 uranian
uranian's picture

you're a braver man than i. i have inadvertently eaten the rotting fish, but that story about the eye muscles being the nicest bit...nei, takk.

Mon, 06/13/2011 - 14:41 | 1365292 GoinFawr
GoinFawr's picture

Personally I prefer hot dogs... people always tell me, "ooo don't eat those, they have really weird things in them...", but I just love animal lips and assholes; and rat feces is one of my favourite things.

Mon, 06/13/2011 - 14:58 | 1365490 GoinFawr
GoinFawr's picture

This article was a red herring.

Mon, 06/13/2011 - 11:06 | 1364806 Cruel Aid
Cruel Aid's picture

They know something... Bernanke Euro Vacation.

Mon, 06/13/2011 - 11:11 | 1364815 Yancey Ward
Yancey Ward's picture

Jeez Louise!  And think of all the work we need to do to rework the field of mathematics now that we have learned that infinity is only 9 months long.

Mon, 06/13/2011 - 11:14 | 1364828 Dick Darlington
Dick Darlington's picture

When did BBVA hop off the group thinking bus? I guess Norway's SWF has the "infinity approach" in Spain too...

06-13 11:03: BBVA Chairman says Spain is a "cause for concern" for creditors
Mon, 06/13/2011 - 11:16 | 1364844 IslandMan
IslandMan's picture

Too bad they listened to Leo's advice to buy Greek bonds.

Mon, 06/13/2011 - 13:47 | 1364845 PulauHantu29
PulauHantu29's picture

Sell your gold and oil.....and buy Greek bonds....yeah, right.

Mon, 06/13/2011 - 11:26 | 1364855 tony bonn
tony bonn's picture

my guess is that the norwegians were literally held at physical or economic gun point and told to buy the piigs crap and it was justified with veiled innuendo of bailout guarantees which will not be forthcoming.

Mon, 06/13/2011 - 15:21 | 1365562 Roger Knights
Roger Knights's picture

"my guess is that ... it was justified with veiled innuendo of bailout guarantees which will not be forthcoming."

I suspect that such "veiled innuendo of bailout guarantees" were given to the Chinese before their recent purchases of peripheral debt. And to the European banks that bought them so heavily, despite the risk.

This is the sort of behavior haughty, dirigiste eurocrats would engage in. They wanted to show the markets and speculators who was boss. They didn't want their shining euro project put under a cloud with low valuations on peripheral debt.  And maybe they even thought that by creating systemic risk if peripheral bonds were to fail, they'd ensure that no country could leave or be ejected from the eurozone. (The downside is that doing that has put the whole zone at risk.)

They thought they could get away with it, because they thought reality is a social construct, and they were in a position to lay down the law.

If they did give such guarantees, no wonder they're desperate to avoid a default event, which would or might cause those to whom the veiled guarantees were given to blow the whistle on them.

Legislators should query banking officials as to whether such assurances were given, and ask to see e-mail records, etc.

Tue, 06/14/2011 - 01:30 | 1366976 GoinFawr
GoinFawr's picture


Mon, 06/13/2011 - 11:25 | 1364860 The spam fritter
The spam fritter's picture

Those Scandinavians have gotta have somewhere to go for summer vacations!  I'm sure they'll be arguing over the best spots/islands with Germany

Mon, 06/13/2011 - 11:34 | 1364874 topcallingtroll
topcallingtroll's picture

Being contrary just to be contrary has hurt my returns before.

The conventional wisdom is very often right.

Mon, 06/13/2011 - 11:34 | 1364876 QQQBall
QQQBall's picture

Nah, they got smoked in 2008 and were looking for yield with a kicker. Unfortunagtely the kicker was aimed at their nuts.... At some point all the retail herd running into USTs will suffer the same fate.

Mon, 06/13/2011 - 11:49 | 1364923 digalert
digalert's picture

Crown Prince Haakon of Norway seeks Bilderberg advice? "censured for attending elite Bilderberg meeting"

Mon, 06/13/2011 - 12:04 | 1364953 GoinFawr
GoinFawr's picture

“One could say we are investing for infinity..."
Lost in the translation?

Mon, 06/13/2011 - 12:08 | 1364969 BlackholeDivestment
BlackholeDivestment's picture

''All Time Wide Syndrome'' ...caused by government cheese.

Symptoms: Pension Gap, and ''trailer park bartel'' among foreclosed widows, related to male suicide, as a result of cheeze consumption.

Mon, 06/13/2011 - 12:23 | 1365015 Dick Darlington
Dick Darlington's picture

Infinity might be a bit too long of a period...

06-13 12:22: S&P cuts Greece LT and FC ratings to CCC from B; off watch; outlook negative
Mon, 06/13/2011 - 13:49 | 1365270 PulauHantu29
PulauHantu29's picture

Didn't the Norwegian Central Bank (as well as the Dutch CB) force their sovereign funds to sell thier gold saying "it is too risky?" a few months ago?

Mon, 06/13/2011 - 13:54 | 1365297 mick_richfield
mick_richfield's picture

Actually, I think this is a terrific idea.  In fact, I personally would be happy to sell some bonds to these ex-Vikings.  My bonds have a very attractive rate of return, redeemable at infinity. 

You know where Infinity is, don't you?  It's the place where parallel lines meet. Man, that must be one crowded place.  Do you know how many parallel lines there are?

To say nothing of the fact that it takes forever to get there.

Mon, 06/13/2011 - 14:07 | 1365341 slewie the pi-rat
slewie the pi-rat's picture

these things happen when you are solvent.  remember?

Mon, 06/13/2011 - 14:26 | 1365399 GoinFawr
GoinFawr's picture


Mon, 06/13/2011 - 14:34 | 1365424 LMAO
LMAO's picture

Nothing to see here, move on.

Both Slyngstad and Johnsen are arrogant clueless Fucks



on Sun, 08/15/2010 - 16:59


And of course Mr. Slyngstad is on behalf of the Norwegian taxpayer increasing overall exposure in the most risky bonds which currently are available on the market. Anything related to the screaming PIGS must be "Gold" in the pursuit of higher Yields according to Mr. Slyngstad.

"And how high is the probability Mr. Slyngstad that Spain and Greece actually will repay these debts in which you now so willingly are increasing your stake?"


Mr. Slyngstad: " I don't give a fuck! The sheeple don't know what's going on, the politicians are clueless and it's an excellent vehicle to generate all kinds of Bonuses to all my friends and financial cronies involved. It's not like I'm using my own money to begin with. It's not like I ever will be held accountable. I'm just digging blindly and hope to stumble across a gold mine. I'll be a hero if I do.....If I don't? WTF do I care! I'll be well and settled by that time" 


Yes, Norway will be pissing it all away, courtesy of the likes of Slyngstad.




Mon, 06/13/2011 - 14:44 | 1365440 GoinFawr
GoinFawr's picture

only 96.6% to go! (On the European Fixed Income portion.)

Mon, 06/13/2011 - 14:45 | 1365472 LMAO
LMAO's picture

Don't worry, with these guys in charge we'll be getting there rather fast.

Jumping from a Greek default to a complete Wipe-out of the Spanish Caja's

will result in 800 billion NOK haircut for Norwegian SWF or roughly one years' state budget. Nobody....NOBODY could have seen that coming.

It's not a secret that besides Greek confetti our Norwegian financial wizzards love the Spanish banking industry.

Thank you mr. Slyngstad for chasing "the high yield roller-coaster to hell".

Also, special thanks to our politicians for making this happen.




Mon, 06/13/2011 - 15:54 | 1365518 GoinFawr
GoinFawr's picture

Of course. Tell you what, call me when it gets to zero; hell call me the next year Norway runs a deficit, let alone goes into debt.

'Debate has already been sparked'. Norway isn't full of sheep, they value their education, and they keep GS at arms length.

This was their contribution to the ECB's Greek bailout. It would have been frowned upon if a flush country like Norway didn't do at least this much.

Mon, 06/13/2011 - 16:24 | 1365678 LMAO
LMAO's picture

'Debate has already been sparked' Norway isn't full of sheep, they value their education, and they keep GS at arms length.


That Sir truly is a bold statement.

Good grief, which "Norway" are you living in?

There is no debate, accountability or whatsoever in Norway as far as the SWF is concerned. Inquisitive minds like the one of Frode Haukenes are getting stone-walled each and every time the topic of the SWF and it's risk management pops up.

99.9% of the Norwegian population, including each and every politician, is clueless as far as the wheelings and dealings of the SWF are concerned.


"This was their contribution to the ECB's Greek bailout. It would have been frowned upon if a flush country like Norway didn't do at least this much"


Are you telling me that our Norwegian politicians and those in controll of the SWF are directly using this facility as a slush fund for a backdoor bailout of Greece and eventually the rest of the piggies.

It looks like the Norwegian taxpayer is going to be well and truly fucked.

Say it isn't so!!!

If that is the case, isn't this ample confirmation that Norway in fact is full of sheep for letting this happen? Well-off* sheep most of them but sheep nonetheless. 

Enlighten me, where is the debate and who is participating?



*Scandinavians are amongst the most indebted people in the world (They have more debt per capita than Americans)

Mon, 06/13/2011 - 17:22 | 1365766 GoinFawr
GoinFawr's picture

Erm, you seem to be a master of 'bold' conjecture yourself:

"Are you telling me that our Norwegian politicians and those in controll of the SWF are directly using this facility as a slush fund for a backdoor bailout of Greece and eventually the rest of the piggies."

NO, I am not telling you there is going to be a 'continuous back door bailout of everyone and his dog until death do us part on the backs of the impoverished forever and ever amen'. Rather I'm suggesting that this could be a token, one-time gesture provided by a solvent nation to ease the insolvency of another to increase Norway's diplomatic leverage. Are you denying that nations all over the world, even egregiously indebted ones who (unlike Norway) have no place making such offers, do this sort of thing all the time without referring to their respective masses' opinion on the matter? Illegal? Possibly. Risky? Undoubtedly. Coerced? Likely. Altruistic? Who knows? Judging by Norway`s record none of these options seem altogether impossible. Should it be carried out sans public consent? Of course not. But as we know about it, either as a bad investment or unauthorized bailout, you can hardly say Norwegians are being 'stonewalled'. File it under 'things to consider next election'.

And I wasn't talking about Scandinavian personal debt; perhaps you've missed entirely the link I've peppered this thread with:

But as long as we're on it: Scandinavians also have some of the highest standards of living in the world; IE higher income can support higher levels of personal debt (a bit obvious, I would think).

Here's another of your 'bold' statements:

"Don't worry, with these guys in charge we'll be getting there rather fast.

Jumping from a Greek default to a complete Wipe-out of the Spanish Caja's

will result in 800 billion NOK haircut for Norwegian SWF or roughly one years' state budget."

Well, like I said before: see you when it actually happens. In the meantime quit counting chickens before the cows have come home to roost; 3.4% is hardly a fat lady singing.

Regards (er, and ROFLMAO)

Mon, 06/13/2011 - 17:59 | 1365955 LMAO
LMAO's picture


I wasn't referring to the Norwegian per se getting stone-walled, just the odd inquiring mind (and again 99.9% of the population is happily ignorant as to what we are talking about) Nobody knows and frankly nobody cares until it's too late.

To put things a bit in perspective I "*" the word well-off providing some additional info as to how well-off* may very well translate into very large parts of the population  being heavily indebted.

Besides from us discussing here . . . Where is the debate you were talking about. The sheeple are complacent, vast asleep or simply don't give a flying fuck.


And what do they know. . . . what is being discussed in Norwegian MSM?

Definitely not the following: 

Courtesy of TRX


-After the Lehman-incident, Norwegian financial authorities held a press conference saying that Norwegian banks were rock solid, and that the US crisis would have little impact on Scandinavia. I responded with a commentary called "Three Bubbles And One Bank." Three days after publishing the piece, the Norwegian government pulled a NOK350bn bailout package out of the hat (so that DnB NOR could make the biggest illegal insider trade ever in the nations history).

-The Norwegian bank has managed to become "too-big-to-fail" with about 80% of the domestic market share, a key financier to the Baltic countries and the second biggest provider of loans/guaranties to the international offshore industry.

-The three Scandinavian central banks have established a backdoor bailout scheme to cover the Nordic banks losses in the Baltic area. (No one - except for the Latvian finance ministry - is willing to comment on this matter).

-Collusion; Norway's PM and DnB NOR's CEO are close friends. These two - and the director of The Norwegian Financial Authority - are all members of the same political party.

-The reason the unemployment rate is low, is that almost 30% of the population are living on various kinds of public benefits, like early retirement or disability support.


Again Norway is full of sheep and as far as their wealth is concerned, sheer dumb luck sitting on a but-load of oil. Please do not confuse this with any "brilliance" in which the SWF and other financial affairs are run.


Tue, 06/14/2011 - 01:01 | 1366075 GoinFawr
GoinFawr's picture

Pretty tough to deny they look smarter than anyone else on this list:

Or tell me that this chart is losing ground.

In fact, so far you`re the only one trying Jaaaaysooon

Canada is sitting on a 'buttload' of oil (boatload of everything, really), and America was too at one are their SWF's working out? ie Like many nations not mentioned here, they had the luck as well, but were just sheer dumb and gave it/are in the process of giving it all away to a handful of plutocrats and oligarchs (minus what 'trickles down' their legs, natch).

Norway, OTOH, has successfully harnessed its non-renewable resources for the benefit of its population; good for them if it allows them to retire early, have top notch health care, internationally respected education and everything else that comes with a high standard of living. So sorry if this offends some ideological sensibility you obsess over; though likely it's nothing more than 'sour grapes', plain and simple. (Oh wait nm, I forgot: you're 'the disgruntled Norwegian')

You need to stop confusing success with failure, personal debt with national debt, collusion with collus... well, you got that one right (how on earth did you imagine central banks interacting with each other, anyway?)

Regards (ROFLMAO)

Mon, 06/13/2011 - 14:34 | 1365432 malek
malek's picture

In nominal terms they might be right.
Which won't be much of a consolation to the people of Norway...

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