On Oct 21, 2008, at 12:57 PM, R C Macaulay wrote:
Howdy Horace,
How did the Iceland bankers do this amazing trick? They began
borrowing money from Japan for 1% and loaned it out at 6+, began to
whoop it up and started buying businesses worldwide..To keep their
cash account on par, they solicited savings depositors by offering
them 5+% interest. As long as they could show the lenders a +
statement it was a gravy train with biscuit wheels... well,.. err..
until the wheels got sorta soggy from the "fond intentions". They
only made one mistake.. they didn't have a Paulson or a Fed.
Richard
True, but unfortunately they do have a Kremlin in their pocket. This
could be a very serious development. Our relationship with the
Kremlin was already showing signs of going downhill by ICCF14, when
Russian physicists were denied visas. That was before the Georgia
attack, and thus a bit mysterious. Perhaps we are now beginning to
see the underlying reasons.
Also notable is that Russia is apparently avoiding an international
meeting to discuss the financial crisis:
http://www.moscowtimes.ru/article/600/42/371761.htm
http://tinyurl.com/5rqcqd
Best regards,
Horace Heffner
http://www.mtaonline.net/~hheffner/
