It’s getting chilly in Iceland…. recession card played

Iceland has seen the Icelandic Krona get pummelled recently, on the currency markets one trader said that they could not get into any forward market, there were spot transactions available only, the currency dropped over a third. They suspended trading last Thursday after Kaupthing Bank followed its peers (Landsbanki & Glitnir) into domestic ownership. The Icelandic government were waiting for an answer from other Nordic banks about help but that didn’t come and in the end the Russians were drafted in bringing €4 billion with them.

Landsbanki operated the popular ‘Icesave‘ account, when going into receivership UK depositors were told they would only get the guaranteed amount of £50,000 but the

Read More

It's getting chilly in Iceland…. recession card played

Iceland has seen the Icelandic Krona get pummelled recently, on the currency markets one trader said that they could not get into any forward market, there were spot transactions available only, the currency dropped over a third. They suspended trading last Thursday after Kaupthing Bank followed its peers (Landsbanki & Glitnir) into domestic ownership. The Icelandic government were waiting for an answer from other Nordic banks about help but that didn’t come and in the end the Russians were drafted in bringing €4 billion with them.

Landsbanki operated the popular ‘Icesave‘ account, when going into receivership UK depositors were told they would only get the guaranteed amount of £50,000 but the

Read More

Dirty oul' town – why Wispa's might clean up our act

Win-Win‘ is a term most of us a familiar with, and often, in any negotiation it is the elusive solution, and in some cases it may as well be the philosophers stone. However, today I saw something (pic related) that gave me insiration, it was an advertisement for Wispa which was power washed into the pavement.

The news covered this story and in it Dublin City Council said they were against this kind of practice and they had their own people go out and power wash the ads away thus leaving fairly odd looking ‘white patches’ on an otherwise grimy city path. So here is the common sense approach dreamt up today.

1. Put a grid over the city, companies can buy certain grids for 6 months at a time – depending on the foot traffic there (that brings in money to the city)

2. In return companies can put their motifs on the paths …

Read More

Dirty oul’ town – why Wispa’s might clean up our act

Win-Win‘ is a term most of us a familiar with, and often, in any negotiation it is the elusive solution, and in some cases it may as well be the philosophers stone. However, today I saw something (pic related) that gave me insiration, it was an advertisement for Wispa which was power washed into the pavement.

The news covered this story and in it Dublin City Council said they were against this kind of practice and they had their own people go out and power wash the ads away thus leaving fairly odd looking ‘white patches’ on an otherwise grimy city path. So here is the common sense approach dreamt up today.

1. Put a grid over the city, companies can buy certain grids for 6 months at a time – depending on the foot traffic there (that brings in money to the city)

2. In return companies can put their motifs on the paths …

Read More

ECB Cut Rates by 0.5% bringing the ECB base rate to 3.75%

The ECB rate change has given many of us a pleasant surprise, the ECB has cut rates by 0.5% giving a new base rate of 3.75%. For many of us that means new lower mortgage repayments (if you are on a tracker mortgage) for people on variables you will have to adopt a ‘wait and see’ approach because banks are not obliged to pass on the rate change. The pressure is coming down at least for now.

[Take note: this is not a ‘positive’ rate cut, it can have a positive result but the motivation behind it raises questions about the solvency and losses of major institutions as well as the threat of deflation.]

So, why would a bank opt to not pass on a rate reduction? Simply put, the income from many tracker mortgages does not cover the cost of funds that banks run on and therefore it would not make commercial sense to give people …

Read More

Now that everything is Guaranteed (bank deposit outlook)

Now that countries are standing behind their national banks what will happen? Greece has backed deposits, Germany did the same. France, Britain, and Italy may follow. The leaders of these countries met earlier today to seek some resolution. The news is now unfolding fast enough that even industry experts are struggling to keep up with it. Alistair Darling is initiating a plan to buy shares from the banks.

Iceland is seeking to guarantee deposits and Fortis was taken over by BNP Paribas. The latest news is that the Fed cash auctions have been boosted to $900 billion. The current issue is that banks …

Read More

Things are gonna change 'round here.

The banking sector is in for some big changes, today we will consider some of ‘what may be’, this article is taken with a view of looking at some of the results that could come out of the current financial market.

One brief mention is deserved for out all time low-popularity bankers. I am not banker, but I do have some understanding of the financial systems which is what forms my opinion… There are people calling for the government to cap the wages of bankers. We should not have government officials decide their wages, as bankers never decided government wages despite pay rolling the state for years during the upturn. Banks and credit flow are the basis of modern society, lack of which is one of the hallmarks of second and third world countries.

If politicians want to make a true difference they should cut their own wages, its seems ludicrous that our Taoiseach earns more than the President of the USA. And if they want to challenge them on the grounds that financial institutions ‘brought the country down’ it …

Read More

Things are gonna change ’round here.

The banking sector is in for some big changes, today we will consider some of ‘what may be’, this article is taken with a view of looking at some of the results that could come out of the current financial market.

One brief mention is deserved for out all time low-popularity bankers. I am not banker, but I do have some understanding of the financial systems which is what forms my opinion… There are people calling for the government to cap the wages of bankers. We should not have government officials decide their wages, as bankers never decided government wages despite pay rolling the state for years during the upturn. Banks and credit flow are the basis of modern society, lack of which is one of the hallmarks of second and third world countries.

If politicians want to make a true difference they should cut their own wages, its seems ludicrous that our Taoiseach earns more than the President of the USA. And if they want to challenge them on the grounds that financial institutions ‘brought the country down’ it …

Read More

How to fix the budget in two easy steps & be unpopular

We have a deficit, we don’t have the money required to run the country and that means we are in a hole. In July we told that it was €5.5bn Euro, that was up from the €3.1bn we were told about early in the year, the latest figures are saying it now stands at €9.4 bn, thus it has trebled. The politicians are asking ‘why don’t banks know what is and isn’t on their balance sheet so they can plan?’… It seems we could ask them the same question and they didn’t even get into shadow leveraged products!

It is unfair to blame Brian Lenihan, he merely inherited a broken machine, the blame game is a futile process in any case, the solution game is a much more productive and meaningful one. Today we will consider the two known solutions for deficit situations, they are not ‘high finance’, anybody will grasp these concepts. The issue will be about two things, firstly will our leaders have …

Read More