I assume that they were lending. I was wondering who was borrowing. Presumably the borrowers would have to pay high rates to justify what they banks were paying for money. Lower rates would seem to be available elsewhere.
Michael Perelman Economics Department California State University michael at ecst.csuchico.edu Chico, CA 95929 530-898-5321 fax 530-898-5901 www.michaelperelman.wordpress.com -----Original Message----- From: [email protected] [mailto:[email protected]] On Behalf Of Eugene Coyle Sent: Saturday, December 27, 2008 10:30 AM To: Progressive Economics Subject: Re: [Pen-l] Iceland The Icelandic banks were lending in the USA and in Europe. Elsewhere? Gene Coyle On Dec 26, 2008, at 10:14 PM, michael perelman wrote: > 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 > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
