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Moody's Puts Iceland's Baa3 Rating On Outlook Negative, Next Stop - Junk, As Island Nation Continues Giving Banks the Finger

Tyler Durden's picture




 

Just because the unpronounceable volcano did not do quite enough damage, and both Hekla and Katla are taking their sweet time, the Iceland Supreme Court recently ruled on the illegality of foreign FX-linked loans, and "Icesave" is still DOA, here is Moody's with a stern warning for the country to change its anti-Keynesian ways promptly or else. "Today's rating action was triggered by the recent Supreme Court ruling on the illegality of foreign-exchange-linked loans and government's continuing difficulties in achieving a resolution to its "Icesave" dispute with the UK and Dutch governments. Specifically, the Supreme Court ruling has the potential to cause substantial bank losses on foreign currency-denominated loans to domestic borrowers and may therefore require additional government support to the banking system. Moreover, a failure to resolve the "Icesave" dispute could lead the Nordic countries and the IMF to withhold future disbursements to the Icelandic government." Zero Hedge is certainly rooting for the tiny island country, even if it is triple hook rated, as it continues to give the middle finger to all the developed world kleptocrats.

From Moody's

Moody's Investors Service has today changed to negative from stable the rating outlook for Iceland's Baa3 local and foreign currency government bond ratings.

Today's rating action was triggered by the recent Supreme Court ruling on the illegality of foreign-exchange-linked loans and government's continuing difficulties in achieving a resolution to its "Icesave" dispute with the UK and Dutch governments. Specifically, the Supreme Court ruling has the potential to cause substantial bank losses on foreign currency-denominated loans to domestic borrowers and may therefore require additional government support to the banking system. Moreover, a failure to resolve the "Icesave" dispute could lead the Nordic countries and the IMF to withhold future disbursements to the Icelandic government.

These two sources of macroeconomic uncertainty are indicative of the generally asymmetric risks facing Iceland and explains the rationale for the negative outlook on its ratings.

Moody's has today also changed the outlook on Iceland's country ceiling for foreign-currency bonds of Baa2 from stable to negative. The outlook on the foreign-currency deposit ceiling of Baa3 has also been changed to negative from stable.

RATIONALE FOR NEGATIVE SOVEREIGN OUTLOOK

"The magnitude of the banking system losses that will result from the recent court ruling is not known at this time but it is clear that Iceland still faces significant risks to its economic and financial recovery," says Kathrin Muehlbronner, a Moody's Vice President -- Senior Analyst and lead analyst for Iceland. On 16th June, the Supreme Court declared that foreign-exchange-linked loans are unlawful and non-binding.

A further ruling of the Supreme Court related to the applicable interest rate in case of loan conversion from foreign to domestic currency is expected in the autumn. It is also unclear at this juncture whether the ruling will apply to all foreign-exchange linked loans (around 50% of outstanding loans) or only a subset (e.g. only household loans). "Although banks have some buffer to absorb losses due to their currently high capitalization levels, Moody's does not rule out that Iceland's banks will be faced with further losses following the Supreme Court decision", says Ms Muehlbronner. "Moreover, this could in turn require the government to inject further capital into the banks as the only realistic provider of additional capital."

This is not the only uncertainty clouding the outlook for the Icelandic economy: A solution to the "Icesave" dispute with the UK and Dutch governments is also still outstanding. In Moody's opinion, this could potentially exert renewed pressure on the funding provided by the IMF and the Nordic governments and the timeframe for the lifting of capital controls. While acknowledging that recent economic data have largely been positive, Moody's believes that these significant and persistent uncertainties have the potential to undermine Iceland's recovery.

Moody's currently projects that real growth will turn positive in 2011, but this projection is subject to significant downside risks. Moody's notes that the Icelandic government's debt is already elevated for the country's current rating level. General government debt is projected to reach 150% of GDP this year in gross terms and 86% in net terms. Net debt is forecast to increase to almost 100% of GDP next year.

POTENTIAL TRIGGERS FOR A DOWNGRADE

Moody's says that downward rating pressure on Iceland's sovereign rating could result from (1) indications that the ongoing uncertainties will negatively impact the real economy, (2) renewed stress in the banking system and a resultant need for further capital injections by the government, which would further increase the already elevated levels of government debt, and (3) pressure on Iceland's external liquidity, which could be related to an inability to resolve the "Icesave" dispute.

Conversely, the rating agency says that positive pressure on Iceland's rating could develop if there are signs of a sustained economic recovery and successful solution to the current uncertainties.

PREVIOUS RATING ACTION & METHODOLOGY

Moody's last rating action affecting Iceland was implemented on 23 April 2010, when the rating agency changed the outlook on the Baa3 rating to stable from negative.

The principal methodology used in rating the government of Iceland is "Moody's Sovereign Bond Methodology", published in 2008. This methodology can be found at www.moodys.com in the Rating Methodologies sub-directory under the Research & Ratings tab. Other methodologies and factors that may have been considered in the process of rating these issuers can also be found in the Rating Methodologies sub-directory on Moody's website.

 

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Thu, 07/29/2010 - 15:42 | 494753 trav7777
trav7777's picture

finger, bitchez

Thu, 07/29/2010 - 16:24 | 494877 Ethics Gradient
Ethics Gradient's picture

Your best work yet!

Thu, 07/29/2010 - 19:33 | 495259 russki standart
russki standart's picture

NEWS FLASH: Bin Laden was spotted in Iceland, US to send in troops to rescue Iceland from the potential Terrorist Threat....Also to help collect banksters loans.

Thu, 07/29/2010 - 19:47 | 495287 Max Hunter
Max Hunter's picture

+ 100

Thu, 07/29/2010 - 21:56 | 495427 Ray1968
Ray1968's picture

Does Iceland have a military? I hope so.

Fri, 07/30/2010 - 09:00 | 495819 Chunkton
Chunkton's picture

Ouch, this one is too close for comfort.

Thu, 07/29/2010 - 19:41 | 495274 Kiss My Iceland...
Kiss My Icelandic Ass's picture

Couldn't have said it better myself.

 

Kiss My Icelandic Ass

Thu, 07/29/2010 - 15:44 | 494759 chet
chet's picture

If you're going down, you might as well light the building on fire and take some pot shots at the cops circling outside.

Thu, 07/29/2010 - 15:44 | 494761 doomandbloom
doomandbloom's picture

Ejjjlkjeuroayuddbhi, bitchez 

Thu, 07/29/2010 - 15:44 | 494762 unwashedmass
unwashedmass's picture

 

good for them. stand strong, Iceland.

Thu, 07/29/2010 - 16:41 | 494925 Hansel
Hansel's picture

+1, who cares what Moodys thinks

Thu, 07/29/2010 - 19:11 | 495229 Kali
Kali's picture

precisely, who the f**k cares what they think.  They should all be in jail.

Thu, 07/29/2010 - 19:23 | 495245 breezer1
breezer1's picture

the imf cares. they authorized the downgrade.

Thu, 07/29/2010 - 22:05 | 495435 Kali
Kali's picture

who cares what the IMF thinks.  Same sea monsters, I should hope that Iceland knows how to deal with sea monsters.  These assholes will show how craven they are if they ever attempt to militarily take "payment" on a small, white, island nation.  It will expose to the world what fascists they are.

Thu, 07/29/2010 - 17:12 | 494993 cossack55
cossack55's picture

I now alternate flying the Iceland flag on even days and my Bennington flag on odd days.  Iceland.....what America used to be.

Thu, 07/29/2010 - 20:32 | 495324 Oracle of Kypseli
Oracle of Kypseli's picture

With 99% literacy, abundant fish and huge supplies of aqvavit, they will eventually be better off.

and

Yes I forgot the sheep, Icelandic wool sweaters anyone?

Thu, 07/29/2010 - 19:24 | 495248 russki standart
russki standart's picture

Yeah, F@ck you Moodies, IMF and the rest of the criminal clan.

Thu, 07/29/2010 - 15:45 | 494763 NOTW777
NOTW777's picture

someone still on the EUR gaspedal with no let up

Thu, 07/29/2010 - 15:51 | 494780 Oh regional Indian
Oh regional Indian's picture

NotW, I think the calls for it's general demise a few weeks ago were far too premature.

Parity will happen together, in one fell swoop.

North Atlantic Tea-tree Organization (NATTO)!

And anyone who'se ever been to Japan knows NATTO is just bad news.

Till then, the manipulators have it. And we'll just be guessing fools. Gamblers.

ORI

http://aadivaahan.wordpress.com

Thu, 07/29/2010 - 16:05 | 494823 NOTW777
NOTW777's picture

1.3267 looks like resistance.

Thu, 07/29/2010 - 17:17 | 495004 Max Hunter
Max Hunter's picture

Why?.. Trend line or Fibo?

Thu, 07/29/2010 - 15:47 | 494769 thislittlepiggy
thislittlepiggy's picture

Errr.. I would say Iceland should stop pissing about and get into the EU double-quick; they may well need a bailout soon...

Thu, 07/29/2010 - 17:00 | 494972 Martel
Martel's picture

They don't need a bailout. They need a good, honest, old-fashioned default.

Thu, 07/29/2010 - 18:47 | 495185 masterinchancery
masterinchancery's picture

Yes, traditional remedies are best, and may keep the foreign banks away for 4-5 years.

Thu, 07/29/2010 - 15:49 | 494775 pan-the-ist
pan-the-ist's picture

The real question: how did Iceland prevent the International Jews from currupting their government?

Thu, 07/29/2010 - 15:54 | 494794 Running on Empty
Running on Empty's picture

It never has Florida like weather to complain about.

Thu, 07/29/2010 - 17:31 | 495032 Max Hunter
Max Hunter's picture

Because of their size.. Plain and simple.. No divisions to speak of. IMO it's more difficult for them to spin their lies when a government as small as theirs can be controlled by watchdogs..

Thu, 07/29/2010 - 18:21 | 495148 lynnybee
lynnybee's picture

why do people "junk" the truth ?    you should be applauded for saying it !   duh ..... Rubin, Greenspan, Barney Frank, Bernanke, Dimon, Summers, Geitner, Blankfein, Clinton's new son-in-law, COME ON PEOPLE !  WISE UP ! 

Thu, 07/29/2010 - 18:41 | 495173 Max Hunter
Max Hunter's picture

I read an article in the Haaretz last year. The  state of Israel made a call to arms for people to volunteer as bloggers to comb the internet and oppose anti-israeli positions with comments in forums. Some 14,000 people signed up within hours. They probably have tens of thousands by now. Then add in the Zionist Christians and Neo-cons.. You have an army of fools spewing hatred for Muslims and alliance with the terrorist state of Israhell.. Makes me sick to my stomach.. I can see them from a mile away.. They think they are sly.. but they're not..

Thu, 07/29/2010 - 19:22 | 495174 Max Hunter
Max Hunter's picture

Junked already.. LMAO .. Like cockroaches.. Their numbers are many..

Thu, 07/29/2010 - 23:04 | 495505 Doctor sahab
Doctor sahab's picture

Their agenda has gotten so bad that I ignore any news report where the report has

a jewish name. One State Solution... cut all money for Israel, Palestinians and let

them live or die together.

Thu, 07/29/2010 - 22:08 | 495440 ATTILA THE WIMP
Thu, 07/29/2010 - 15:54 | 494790 THE DORK OF CORK
THE DORK OF CORK's picture

Its a terrible feeling when you feel ashamed for your country.

Even so , Iceland is a beacon of light for a country under complete domination of the money masters.

Ireland needs to change its name to debtserviceland as Iceland/Ireland can easily be confused by people with limited geographical knowledge.

 

Thu, 07/29/2010 - 16:15 | 494839 hedgeless_horseman
hedgeless_horseman's picture

When will Iceland finally throw out the fucking Brits?

Thu, 07/29/2010 - 16:30 | 494892 THE DORK OF CORK
THE DORK OF CORK's picture

The average Brit is a honourable sort of fellow - its the deviants that lurk around the streets of the square mile that are the problem.

Thu, 07/29/2010 - 16:40 | 494923 Oh regional Indian
Oh regional Indian's picture

Very true Dork. And you can take that to each and every country in the world.

Good normal folk.

And ALL the rotten apples in positions of power.

 

ORI

http://aadivaahan.wordpress.com

Thu, 07/29/2010 - 18:52 | 495199 DoChenRollingBearing
DoChenRollingBearing's picture

ORI, my experience as well, everywhere I have been.

Thu, 07/29/2010 - 17:18 | 495005 Max Hunter
Max Hunter's picture

I agree 100%... but they really need to stand up to the City...

Thu, 07/29/2010 - 19:30 | 495255 breezer1
breezer1's picture

bankers, in every city.

Thu, 07/29/2010 - 17:25 | 495017 trav7777
trav7777's picture

The average USian is also a decent person.  The Money Tribe that runs the financial systems in both nations is the problem.  Both of these States saw the largest exodus from Europe during the War of clan members, consequently it is no accident that since then, both have had increasingly aggressive and militaristic foreign policies.

The tribe has had a banking stranglehold on Britain since 1700, and has lent the sovereign balls-deep into debt.  That type of financial posture makes the sovereign increasingly beholden and presents a tremendous amount of policy-shaping clout to the debtholders.

Thu, 07/29/2010 - 16:50 | 494953 Roy Bush
Roy Bush's picture

Good question.  Hopefully, Iceland defaults and takes their country back.  They should stand up against the debt-slave system!

Thu, 07/29/2010 - 16:09 | 494840 Trundle
Trundle's picture

Money backed by seashells.

Go Vikings!

Thu, 07/29/2010 - 15:58 | 494803 vote_libertaria...
vote_libertarian_party's picture

So who has their bonds/loans on their books and for how much?

Oh...I forgot...nobody ever needs to worry about large losses anymore.

Never mind.

Thu, 07/29/2010 - 16:00 | 494808 metastar
metastar's picture

Go Iceland!

Thu, 07/29/2010 - 16:17 | 494856 Walt Whitman
Walt Whitman's picture

Throw all the Icelandic banksters in the Jcelandikjaggaolnik.

Thu, 07/29/2010 - 16:02 | 494813 RockyRacoon
RockyRacoon's picture

Consumers are less and less concerned with FICO scores.  A country should become less and less enamored with "credit rating agency" scores as well.  Those who have NO credit have terrible FICO scores even though they could probably buy and sell most of us.  A country gets more solid in my opinion the more it repudiates its debt.   Just my narrow view.

Thu, 07/29/2010 - 16:46 | 494943 Dr. No
Dr. No's picture

Reminds me of a generation past.  A bunch of years back, I overheard my grandmother (depression generation) on the phone with a banker.  The banker was pushing a new fangled visa debit card for her checking account for which has been open for longer than I have been alive.  The banker stated the debit card would help her credit rating, to which she replied "Credit rating?  I dont care about that..." and she hung up.

Thu, 07/29/2010 - 16:03 | 494817 old_turk
old_turk's picture

Mo..o..o..o..o..o..o..o..dy's can stuff it their pie hole.

Icelandic folk, excluding the pols and banksters rock!

Thu, 07/29/2010 - 16:08 | 494836 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

*ring ring* 

Hello? China? Russia? 

Hey, the EU won't trade with us anymore. You guys interested in buying lots of fish? We also have some airfields and sub bases ready for lease. We also have tasty fermented shark. A real aphrodisiac, that one is.

P.S. we also have some really hot babes here. Good after you have some fermented shark.

Thu, 07/29/2010 - 16:16 | 494857 aheady
aheady's picture

And Bjork. Don't forget Bjork!

Thu, 07/29/2010 - 16:43 | 494931 MachoMan
MachoMan's picture

Meh, more partial to sigur ros and mum, but bjork isn't too shabby.

Thu, 07/29/2010 - 16:29 | 494890 seventree
seventree's picture

Plus natural hot & cold running water.

Thu, 07/29/2010 - 16:11 | 494847 Thoreau
Thoreau's picture

I have my own rating agency; and we have just upgraded Iceland to triple fucking-A.

Thu, 07/29/2010 - 17:02 | 494977 Fast Twitch
Fast Twitch's picture

FNA...+ 1

Thu, 07/29/2010 - 16:12 | 494848 Bankster T Cubed
Bankster T Cubed's picture

who was the fed bulltard that declared them absolutely sound in 07?

 

Thu, 07/29/2010 - 16:13 | 494851 Bankster T Cubed
Bankster T Cubed's picture

Has Moody's downgraded themselves yet?

Thu, 07/29/2010 - 16:14 | 494852 ElvisDog
ElvisDog's picture

Oh heaven forbid, the IMF "may withhold future disbursements". The IMF doesn't give you money, it gives you loans at their terms. Iceland is right and proper to tell the IMF to f*ck off.

Thu, 07/29/2010 - 16:36 | 494910 ewmayer
ewmayer's picture

@Bankster T Cubed:

"who was the fed bulltard that declared them absolutely sound in 07?"

I believe that would be none other than Frederic "Douchebag Munchkin" Mishkin ... ZH likes to refer to fast Freddie as "the man who singlehandedly destroyed Iceland".

Thu, 07/29/2010 - 16:38 | 494913 barkingbill
barkingbill's picture

can't wait to visit. music, pretty girls, booze, landscapes, what are they missing?

Thu, 07/29/2010 - 16:44 | 494934 Hephasteus
Hephasteus's picture

Cold can't kill them. I've seen them bathing in steaming lava water. They aren't human. There's something wrong with those people. :)

 

Seriously here's hoping icelands electronics takes off this year or next.

Thu, 07/29/2010 - 16:55 | 494962 nobita
nobita's picture

i wouldn´t be too worried. sweden, finland, norway and denmark will lend iceland the money it needs.

we can afford it and it would not be a difficult sell politically.

Thu, 07/29/2010 - 17:06 | 494983 THE DORK OF CORK
THE DORK OF CORK's picture

I thought the Icelandic culture was strangely divorced from mainland scandinavian culture.

Perhaps because those Norse blokes made the mistake of taking Irish slave wives out of Dublin to keep their beds warm - big mistake.

Then again they may have taken the best of them leaving us poor Irish blokes with the ugly sister.

Thu, 07/29/2010 - 19:14 | 495230 Goldenballs
Goldenballs's picture

The IMF will learn don,t piss about with Vikings .............

Fri, 07/30/2010 - 14:13 | 496656 Hephasteus
Hephasteus's picture

No I think that lesson is don't go to iceland and tell them stories about immortals who you can't kill. They'll get in boats and go stick swords in everything just as scientific methodology.

Thu, 07/29/2010 - 17:01 | 494976 hound dog vigilante
hound dog vigilante's picture

 

A downgrade from Moody's or any other bullshit ratings agency is a badge of honor.  Good on you, Iceland.

The good people of Iceland are living proof that the western financial industry/system is over-estimated & unnecessary. Somehow the sun still rises in Iceland each day - without predatory banks and 'leverage'... a far cry from the apocolypse predicted by Paulson and Geithner when they extorted the TARP fortune from taxpayers (with zero accountability or oversight).

Soon we will all burn this mother down and join Iceland, individually or collectively - doesn't really matter... it's inevitable.

Hooray Iceland!

Thu, 07/29/2010 - 17:35 | 495037 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

Double-whammy if Dagong in China rates them highly.

Thu, 07/29/2010 - 17:08 | 494978 Anarchist
Anarchist's picture

Iceland is going to find out the downside of being an Island. Eventually supplies of food and other goods will diminish to the level Gazans have had to get used to. There will be a huge loss of jobs. Those who can leave will. People are going to have to figure out how to fish all over again but that will be tough with no fuel for their boats. Six months of "austerity" will have them begging to become debt slaves. There are very few in the Western world as tough as a Gazan or someone in the third world used to deprevation.

Thu, 07/29/2010 - 17:13 | 494994 Thisson
Thisson's picture

NEWSFLASH: the entire Earth is an Island. 

Thu, 07/29/2010 - 17:21 | 495009 traderjoe
traderjoe's picture

And the alternative is to enter into debt-payment agreements akin to post-WWI debt agreements? Damned if you do, damned if you don't. 

Thu, 07/29/2010 - 17:28 | 495024 trav7777
trav7777's picture

IOW, it'll become target-rich for middle aged men w/ FRNs, huh?

OH NO...that's just...awful.  MUAHAHAHAHAHAHHAHAHA

Fri, 07/30/2010 - 03:29 | 495643 Things that go bump
Things that go bump's picture

Iceland has no trees.  If there were any scraggly ones growing there when the Norsemen found that bleak place they were used up within the first generation, long before they were even converted to Christianity (by vote).  Certain people owned the right to salvage the driftwood on the shore, and that was the only wood, except what could be shipped in at great cost and effort.  The only crop that grew really well was hay, and the Icelandic people have managed to make a living there for over a thousand years.  They fed the hay to their animals and they ate the animals and fish. There is an old saying along the lines that a child should have a taste of bread at Christmas.  Flour was an expensive luxury saved for only the most special occastions.  I've been lead to believe they ate their sandwiches between two pieces of dried fish.  Vikings were pretty tough stock, and they can trace their ancestry as far back as some of the sons of Ragnar Lothbok.  I saw a comment on some blog by one of them a few months back, and they stated that maybe the kids would have to eat skyr (yogurt)instead of cornflakes for breakfast, but they believed they would be just fine and were willing to make the sacrifice. They have geothermal power and I read somewhere that they even grow citrus in hot houses.   They might just get by because they are small and out of the way.   I hope they toss the IMF out on its ear and give the Dutch and British the finger. 

Thu, 07/29/2010 - 17:28 | 495025 trav7777
trav7777's picture

Iceland should issue a sovereign press release downgrading Moody's to Corrupt, Useless, and Stupid

Thu, 07/29/2010 - 17:57 | 495097 OutLookingIn
OutLookingIn's picture

 

 trav - fully agree.

Moody's reminds me of someone who lives in glass house and likes to throw stones at all the neighbors!

Thu, 07/29/2010 - 18:05 | 495122 h4rdware
h4rdware's picture

+N

Fri, 07/30/2010 - 05:09 | 495665 Stormdancer
Stormdancer's picture

Corrupt, Useless, Notoriously Twisted Snakes (on negative watch)

Thu, 07/29/2010 - 17:57 | 495096 Goldenballs
Goldenballs's picture

I am sure if I was a hard working fisherman in some of the coldest seas on earth off Iceland I would be giving the IMF the two fingers.Whatever bankers do,which is usually in secret,the average fisherman in the street gets extremely pissed off when his country is virtually bankrupted by financial institutions that he probably has very little knowledge of or dealings with.Iceland should declare war on the IMF and Wall Street and despatch a couple of Gunboats post haste to put over the fishermans point of view............

Thu, 07/29/2010 - 18:00 | 495104 h4rdware
h4rdware's picture

Go Iceland.

I mean really, just 'go-Iceland!'.

Somebody has to do it. You've already taken the hit, so you might as well be the market leader. Team up with Greece. Exchange notes, whatever's necessary.

GO ICELAND. please! Other sappy countries are waiting for somebody with teh' ballz to shake off the planetary-class paresites! I'm waiting. Everyone else is. Put us to shame, go on....

Uh, sorry. But I really am waiting for Iceland to provide the middle finger to every scenario where my own country just can't manage it.

 

BTW. I'm moving to Iceland.

 

Thu, 07/29/2010 - 18:06 | 495107 linrom
linrom's picture

The Icelandic Ponzi banking collapses; the Icelanders do not want to make good on the banking loans and its Supreme Court declares that Foreign FX loans are illegal and ZH somehow takes that as a rebuke to Keynesianism? So Iceland won't rival financial largess of London, it can still try to sell bonds to its citizens?

 

Thu, 07/29/2010 - 18:11 | 495129 NoTTD
NoTTD's picture

What can I say, except "Ja, hey!  Iceland!"

Thu, 07/29/2010 - 18:15 | 495140 Goldenballs
Goldenballs's picture

News Flash - Icelandic Gunboat Thor put a broadside through the IMF,s headquarters earlier today and after a radio exchange conducted after the IMF surrendered Iceland explained "We Ain,t Gonna take any more Crap we want this issue sorted now",Cod and Haddock prices have promptly been raised by 5000% so the financial debts should be paid off by the end of the year.Iceland,s other Gunboat heading for Wall Street could not be contacted for a comment on the situation ......................

Thu, 07/29/2010 - 18:49 | 495189 RingToneDeaf
RingToneDeaf's picture

I thought we were beyond all this bad debt business. Bad debt is all safely concealed in off book soft-performing accounts. Hasn't anyone told the Icelanders yet?

It is all on the level.

Maybe they can get Obama to write a check and put this matter to rest.

The check is in the mail Bitches!!!!

I love you and it really whitens teeth.

 

 

 

Fri, 07/30/2010 - 09:01 | 495814 zhandax
zhandax's picture

You really need to add /sarcasm at the end of that assuming this is the case.  Otherwise, "Fresh meat boyz!"

Thu, 07/29/2010 - 18:50 | 495193 Fix It Again Timmy
Fix It Again Timmy's picture

Hang tough Iceland.  All Icelanders need to open a safety deposit box in the greedy banks and deposit a huge fresh North Altlantic cod in the box and then throw away the key; after all, there is something "fishy" about all this

Fri, 07/30/2010 - 07:39 | 495709 Kobe Beef
Kobe Beef's picture

My god man, you are a genius. This is a fantastic prank.

Anyone upset about the Bank bailouts, rampant fraud, and lack of regulatory oversight can drop a fresh fish in a safe deposit box tomorrow.

What are they gonna do? Close the account? Like I wanted a safe deposit at ShitiBank anyway.

Pure genius. There's a branch down the street from me. oh yeah!

Thu, 07/29/2010 - 19:02 | 495215 Goldenballs
Goldenballs's picture

"Go,Go,Iceland",home of the brave,land of the free.................

Thu, 07/29/2010 - 19:08 | 495224 bugs_
bugs_'s picture

Deep Shah.

Thu, 07/29/2010 - 19:23 | 495244 dcb
dcb's picture

the IMF will blink. they can't have Iceland say fyou and pull it off. it is also a good clean living country that plays by the rules.

the rules that didn't work are the ones that were imposed by the corrupt banking oligarchy. they are saying we did the things you said were OK, and it blew up. we aren't going to pay for that. that is what they are attempting to say in greece, but it isn't being allowed and their are riots. see an honest country that isn't run by a corrupt oligarchy can do things like this.

Thu, 07/29/2010 - 22:01 | 495432 Robert J Moran
Robert J Moran's picture

A tiny butterfly in Iceland flapped its wings (do they have butterflies?!).  Soon a powerful wind gathered strength, blowing through the banking centers of the world... One can only hope!  

Thu, 07/29/2010 - 22:12 | 495445 Kali
Kali's picture

Fer sure.  Iceland should open a Freedom Fund or Freedom Bank of its own.  I would put money in it if they fuck off the leeches.

Thu, 07/29/2010 - 23:07 | 495508 Its the Vatican...
Its the Vatican Stupid's picture

Likely, Iceland will soon get "the bad diagnosis".

Only one thing to do when that happens... Look out Limeys! Better hide your wimmin with bad teeth from the invading Icelandic horde!

Fri, 07/30/2010 - 02:04 | 495609 Kreditanstalt
Kreditanstalt's picture

Just one point: austerity is still a necessity.  You may ask why, or where the money went but those are moot points.  The money is gone and government spending would still have to be cut regardless...

Fri, 07/30/2010 - 02:07 | 495611 Privatus
Privatus's picture

GO ICELAND!

Fri, 07/30/2010 - 03:12 | 495639 luigi
luigi's picture

They can take pride of the downgrading: it shines like a medal of honour on the dreast of the valiant vikings.

They should set up a club with all countries who showed finger to the IMF (Argentina, soon Greece, Brasil... ) and have preferential trade agreement with them (show the finger to WTO as well!) then we'll see in a few year who will be the "besieged" one...

Fri, 07/30/2010 - 12:13 | 496355 Printfaster
Printfaster's picture

What is funny are the Icelandair ads that come up from google.

Iceland does not need dollars to buy fuel.  They can use googlebucks.  Or they can trade direct with Norway for gas and oil, by sending them lutefisk by the containerload.

Do NOT follow this link or you will be banned from the site!