While the Europeans Dither and the Americans are Poleaxed - The Russians Pounce!
This is also posted on the main thread of the current financial collapse, but I thought that this was worth its own thread:
https://teakdoor.com/us-domestic-issu...tml#post790287
Russia Lends Iceland 4 Billion Euros to Save Banks (Update1)
By Tasneem Brogger
Oct. 7 (Bloomberg) -- Iceland got a 4 billion-euro ($5.43 billion) loan from Russia, pegged the krona to a trade-weighted index and nationalized the nation's second-biggest bank after the currency's slump and bad debts crippled the financial system.
The fixing of the krona, at a rate corresponding to 131 per euro, applies for today, according to the Icelandic central bank's Web site. Further moves to boost the currency will be announced in coming days, it said.
The liquidity crisis has pushed down the krona as much as 31 percent against the dollar in the past 30 days as a shortage of credit batters economies reliant on debt. Prime Minister Geir Haarde last night guaranteed domestic bank deposits and gave regulators the power to take over the assets of banks that have run up debts equivalent to 12 times the size of the economy.
``Russia wants to show that it's a financial power and is willing to help solve the global crisis,'' said Beat Siegenthaler, chief emerging markets strategist in London at TD Securities Ltd. ``There are more questions as to why Iceland was not able to get a similar loan from the Nordics or from the European Central Bank or the U.K.''
Continued here:
Bloomberg.com: Worldwide
Who says that people can't play politics during a crisis?
