冰岛破产(Iceland bankruptcy)

冰岛破产（Iceland bankruptcy）The United States, South Korea, Pakistan and dubai also face insolvency crises, from the most livable to the most indebtedWith a population of just 320, 000, per capita GDP is the fourth in the world, and Iceland, a Nordic island, was voted "the most livable country" by the UN in 2007. But overnight, the country in this paradise has fallen into hell, and now the Icelandic people have to face the burden of nine times GDP.The "misfortune" of a happy countryLiving in Iceland is considered to be happy. The high welfare system ensures that children can complete the university free of charge, and that the health care costs of the citizens are almost entirely in government, and they can receive unreduced welfare benefits after losing their jobs. But such high welfare is now based on a national debt.At retail stores in Iceland, residents are snapping up supplies. Because of the collapse of the entire banking system, the foreign exchange market was closed, imported goods were not available in time, and a large number of daily necessities were in danger of being broken up. Moreover, the krona's decline has made local prices even cheaper than before. The krona is now close to 15 to 1, nearly double the value of two years ago. Iceland's economy is undergoing a huge test, with major Banks falling, a sharp devaluation of the currency and a pause in the stock market, and Iceland's prime minister even advised the nation to fish itself to save food.Internet users have put Iceland on eBay for less than $2. The auction of Iceland attracted 26 anonymous people who collectively bid up to 84 times, rising to 10 million pounds in one day.Icelandic Banks have gobbled up capital from home and abroad in recent years, and have bought a large number of overseas assets, which eventually led to ballooning debt. Iceland's GDP is only $2007 in 19.37 billion, but the foreign debt of more than $138.3 billion, about 320000 population in Iceland, which is roughly equivalent to Iceland on each citizen with a $370000 (RMB 2.53 million)."My fellow citizens, this is a real danger. In the worst case, Iceland's national economy will go into the whirlpool with the Banks, and the result will be the bankruptcy of the state." On October 6th, Iceland's prime minister, "the world's mildest prime minister", was alerted to the whole nation, while Iceland's President, grimsson, was admitted to hospital with a heart attack. Iceland became the first sovereign state to be toppled in the financial turmoil that led to the U.S. subprime mortgage crisis.Iceland's near-bankruptcy is similar to that of the us, but it is far less risk-resistant than the us. Since the early 1990s, Iceland's financial industry has been developing for more than a decade, and its share of the national economy is far greater than that of other industries. Icelanders understand on their own strength and rich natural resources can't be the country for a short time, so they will follow the countries such as Britain and America to develop the financial sector, the highinterest rates and low control open financial policy, attract foreign capital. And Iceland's Banks also according to the Wall Street investment bank, the international capital market a large number of borrowing in yen and so on cheap, short-term debt to investment profits and risky assets, in order to gain large spreads, subordinated debt assets is one of them. The global economy has been booming for more than a decade, despite the bursting of the tech bubble in the early 2000s.But the financial sector is not in recession. The United States after the "9 · 11" the implementation of radical economic stimulus policies amplify the bubbles of the world economy, which further led to Iceland's Banks excessive lending, financial leverage at an alarming rate, and total debt scale is 12 times the gross domestic product (GDP).Destroy Iceland's time bombEarly in 2007 the outbreak of the subprime crisis, imperceptible evolved into a worldwide financial tsunami spread from home to the United States much, burst of energy to make the financial bubble burst gradually throughout the world, and those in the foam cover "swimming naked" country eventually had to expose under the eyes. Iceland bears the brunt.Since this year, Iceland's financial industry as the deterioration of the international situation continues to hit, the stagnation of money market financing, Iceland's banking was "tsunami", national rating was cut in a row. Foreign Banks have suspended operations with the country's Banks and Iceland's foreign exchange reserves have dried up. Iceland's debt owedby a big four Banks for more than 100 billion euros, and Iceland's central bank can use the flow of foreign capital only 4 billion euros, the financial sector to be ready to destroy the time bomb of Iceland.On October 7th Landsbanki, Iceland's second-biggest bank, was taken over by the government, which suspended all withdrawals for Icesave, a british-run Internet bank. On October 8th Glitnir bank, the third-largest bank, was recapitalise by the Icelandic government in a bid to shrink its plunging banking sector. In addition, because of lack of enough to prop up the market, the central bank also decided to give up the day in the day of 131:1 the crown of a fixed exchange rate against the euro, President of the Icelandic krona float, then crowns the huge value. On October 9th the government of Iceland announced that it would take over Kaupthing, the country's biggest commercial bank, and all three Icelandic Banks have been taken over by the government. Prime minister haarde has called on depositors to remain calm and not to rush to withdraw money from the bank, and he promised that all of Iceland's savings will be guaranteed by the government. Iceland became Europe's successor to Ireland, Germany, Austria, Greece and Denmark. On Monday October 13th, the Icelandic stock market was closed and trading resumed on Monday."Bank nationalization, currency restrictions and the suspension of stock market trading are not positive measures that can cure pain," said 4Cast, an independent research group. "It is clear that Iceland needs a lot of foreign aid to avoid further damage to the economy."Financing plight of Iceland originally are not going to the international monetary fund (IMF) for help, because of the international monetary fund after the Asian financial crisis in 1997's reputation is not good, its almost harsh conditions to Iceland. But on October 13th an international monetary fund official said that Iceland had officially turned to the group for help. Without the help of the rest of Western Europe, Iceland has turned to Russia in the hope of getting a 4 billion euro loan to tide it over. Iceland's central bank governor, aldersen, said the main reason for lending to Russia was that Iceland could not get support from "very good friends" in the western hemisphere. Facing the cold flow from the financial industry,Some icelanders are refocusing their attention on the country's ancient industries, fishing. In the 1930s, a quarter of Iceland's population engaged in fishing, and the number of fishermen now accounts for only 3% of Iceland's population. That corresponds to the booming financial sector. Bank staff in Iceland said they would not rule out taking off their suits for fishing uniforms.The birthplace is also "bankrupt"Iceland is just the tip of the iceberg. America, the home of the financial crisis, is also insolvent. In July 2007, the first wave of the financial tsunami was triggered by the downgrade of more than 1,000 U.S. mortgage debt by the world's leading ratings firms. Bear stearns became the first big investment Banks in the subprime crisis, because the U.S. government have intention to not intentional of neglect, everyone think thatthings will soon be calm, however, with the investment Banks such as citigroup, merrill reported a loss of financial reporting, and real estate remains sluggish, the biggest consumer spending in the United States gradually affected. In January 2008 to February, a series of data shows the U.S. economy has slowed, recession probability rise, financial stocks continue to slump, the effect of the fed's $200 billion bailout failed lasted only a day. Stock markets around the world have also suffered a series of setbacks due to the role of global weathervane in the U.S. stock market.The financial crisis has engulfed America's financial institutions. As of June 30, 2008, 117 Banks were listed under the U.S. federal deposit insurance corp., with total assets totaling $78 billion. In the first nine months, the federal deposit insurance corporation (fdic) has taken over 13 Banks and the total savings account will eventually reach $1.1 trillion. Due to loss of subprime mortgage bonds and run, with 32 billion assets and 19 billion deposits of indymac, as well as 307 billion in assets and 307 billion Washington mutual bank failure, as the failure of the third and the biggest two savings Banks. Because both of these losses were too large, the federal deposit insurance corporation could only let it go bankrupt, so as not to endanger its own security.However, the worst is yet to come. On September 7, the federal housing finance agency identified with characteristics of semi state-owned mortgage finance giants fannie mae and Freddie MAC are unable to continue to operate safety, health, unable to meet its public functions, the U.S. government then announced the takeover of fannie mae and Freddie MAC; On June 14, bank ofAmerica announced $44 billion for merrill lynch, the third largest U.S. securities firm. Lehman brothers, thefourth-largest U.S. investment bank with assets worth $639 billion, filed for bankruptcy protection on Friday because of a $613 billion liability. On September 17 solstice on October 9, the federal reserve has injected $85 billion and $37.8 billion to save American international group (AIG), the first large insurance company, AIG assets amounted to $1 trillion, if its bankruptcy, its up to $440 billion in financial derivatives will fall through in us financial sector. So far, an unprecedented financial tsunami has taken shape on Wall Street, smashing Wall Street and roaring toward other countries and regions.The United States, at the center of the tsunami, was determined to rescue the financial markets in order to bail out the financial markets in order to prevent the real economy from being swallowed up by the tsunami. On September 20,The U.S. government's $700 billion bailout bill, ready to buy subprime mortgage-backed securities, and the legal limit on Treasury debt up to $11.3 trillion, becoming the economy since the great depression of the United States the largest bailout package. US President George w. bush says taxpayers need to take out huge sums of money to pay for the bailout, but it is better than mass unemployment and pension losses.Experience turns 700 billion bailout bill, on October 5, in the real economy suffered under the threat of a recession and rising unemployment, the house of representatives passed a revised plan, finally the money is actually involved more than 800billion dollars. President bush immediately signed the bill so it could be implemented as soon as possible.In 2007, America's gross domestic product (GDP) was the highest in the world, more than 2.6 times as high as Japan's second, to $13.98 trillion. As of September 2008, however, America's gross debt has reached a record $53 trillion, 3.79 times that of GDP, this means that the average American citizen with $128800 of debt (the United States has a population of 303 million). The United States, already insolvent, has become the first country to go bust. But America is, after all, the world's most powerful nation, and is the world's largest currency issuing country in the world, this makes the United States there is a plenty of monetary tolerance, thus it can be money to stimulate the economy, the huge consumer market of domestic and foreign investment capacity is relatively easy to digest these bills.Multiple countries collectively "skinny-dipping"In Asia, where the current-account deficit is the highest in Asia, its Banks have the highest loan-to-deposit ratio of 136% in Asia. That said, south Korean Banks lend 136 yuan for every 100 yuan they deposit, well above the average of 82 percent in Asia. The won has now plummeted to its lowest level since the 1997 Asian financial crisis. In addition, South Korea's current account deficit is the Asian crown. South Korean Banks have accumulated a large amount of short-term external debt over the past few years, and in 2008 South Korea's foreign debt was almost $180 billion, according to statistics. So, South Korea is called the Asian version of Iceland.Close to bankruptcy and Pakistan, just as the unrest in the country's President asif ali zardari is planning to go to America to borrow money, however, evidenced by the United States for the national economy on the brink of collapse obviously is distant water cannot quench a fire near Pakistan. Pakistan is now downgraded by standard & poor's to CCC +, which is just above bankruptcy. Pakistan's foreign exchange reserves are reported to be only $8.14 billion, just enough to cover the cost of imported groceries for a month. The rupee has fallen 21% and inflation is as high as 25%. Pakistan is already on the brink of bankruptcy.Similarly, countries in the Middle East have been hit by the financial tsunami, with Saudi Arabia's stock market falling sharply on October 6th and 7th, to a total of about 16.1 per cent. Egypt's stock market was even worse, with a 16.4% plunge on July 7th. Seven of the six gulf oil producers lost $150bn in market capitalisation in three days on October 6th. And dubai, the debt-laden emirate, is the leader of the financial tsunami.Since the 1970s, dubai has vigorously developed non-real economy such as real estate, tourism and financial services, so as to avoid the lack of oil resources. By the 1990s, dubai's change was jaw-dropping: premium hotels and trendy shopping centres were everywhere. The unfinished tower of dubai is to be the tallest building in the world. But the world's tallest skyscraper, the busy port and airport, the wonders of artificial island hotel infrastructure such as expensive, the dubai government and its subordinate development companies to issue bonds to raise funds. The Wall Street journal has publiclyreported that dubai relies on a lot of debt to invest in scale, which is about four times that of other gulf states. With international capital markets freezing and costs soaring, dubai will find it difficult to borrow money from capital markets to finance the continuation of existing debt and to pay higher interest costs. Dubai will not be bankrupt for the time being, but it depends on the boom in the property sector and the extent to which the financial sector is affected by the global financial tsunami.On Oct. 13, represented by Germany law of the European governments have issued corresponding bank rescue plan, to boost in the banking system is low, the total amount has reached nearly $2 trillion.From the point of view of insolvency, national bankruptcy is no different from ordinary business, except that national sovereignty is sacrosanct. To borrow but not to threaten a country's sovereignty, the idea of buying a country when a country goes bust is just a joke. Iceland's eventual prosperity, with its excellent institutions and human capital, is inevitable, but the process and cost may be long and hard. The cover of time magazine, published on October 13th, was the third year after the crash of 1929, in which a bunch of americans were waiting in line for free food amid the bleak winds of the day. It is not surprising that the virtual economy has grown out of the real economy and the risk has become a habit. What is important is that the world can learn from such crises.。