1. „Iceland best place to live, Africa worst – UN“ Reuters 2007 ICELAND CrisisLauri Läänelaid
2. Iceland HDI 2007 – 0,968, 1st. Norway and Australia followed GDP per capita 2007 – 64 190 USD Easy access to money provided by Banks Strong insurance policy (2 pension schemes, health insurance etc)
4. Business Vikings Jon Asgeir Johannesson – establisher of Baugur Group Lydur and Agust Gudmundsson aka „The Bakka Brothers“ – establishers of Bakkavor and controlling stakeowners in Exista bank Bjorgolfur Gudmundsson - Iceland's second businessman worth more than a billion dollars, ex-chairman of Landsbanki
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6. The scheme Bankruptcy Loans money No money for depositors Buys bills/notes/bonds No money to pay back loan No money to pay to creditors Buys capital or expands
7. The Baugur Tragedy No money for depositors Loans money to Jon Asgeir Johannesson Invests into Landsbanki calls in 1 000 000 000 £ e.g. Hamleys, House of Fraser, Goldsmiths No money to pay back
9. The scenario Risky loans by Kaupthing, Landsbanki and Glitnir (debt in excess of €50 billion) Local household debt -> inflation -> High prices -> high interest rates (15,5%) -> Foreign depositors (Icesave, Kaupthing Edge)
10. The scenario Global financial crisis "Iceland is on the brink of collapse. Inflation and interest rates are raging upwards. The krona, Iceland's currency, is in freefall„ The Guardian, 5 October 2008 Run on deposits in the UK (300 000 UK savers)
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12. The consequence Enterprises bankruptcy – locals lose their jobs UK and Belgium depositors have lost their assets Britain declared Icelanders as „terrorists“ Thirdof the population consideredemigration
Lauri. I`d like U to draw Ur attention to the fact that the inflationrates tripled in just one year. Vertical axis show the rates, horizontal – time. They soared and reached their peak in 2009. After that there was a sharp fall and the rates levelled out from May till October. And have shown a downward trend ever since.
Pangad laenasid palju raha välja (kõrge riskiga ettevõtetesse), kohalikud elanikud võtsid palju laene (nagu Eestis) -> inimestel oli palju raha käes, palju raha ringluses ja see tõi kaasa inflatsiooni. Inflatsioon ehk kõrged hinnad tingisid pankadel kõrged hoiuseintressid -> kõrged intressid tõid kohale välishoiustajad (Inglismaalt).
