I'm trying to understand today's story in the Wall Street Journal about
Iceland. The article says that the banks were offering more than 7%
interest on deposits and the Icelanders were borrowing money cheaply
from places like Japan. To whom were the banks lending at rates
substantially more than 7%? Or were they just using the funds to
speculate on a domestic bubble?
--
Michael Perelman
Economics Department
California State University
Chico, CA
95929
530 898 5321
fax 530 898 5901
http://michaelperelman.wordpress.com
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