Some sad Scandinavian economic news…

Danish company Sterling Airlines declared bankrupcy on October 29th, 2008. In fact, this is what you find instead of their website now. So, in case you booked your flight to come and visit us in DK, mmh, it’s better if you look for another airline…Your money would be lost too.

And it seems that not that many people in Italy know that Iceland went bankrupt October 9th…or to put it in a better sounding way, it is in “the deepest and most rapid financial crisis in peacetime history” (BBC).

Sigfus Sigmundsson
Photo Flickr: Sigfus Sigmundsson

The 2008 Icelandic financial crisis is a major ongoing economic crisis in Iceland that involves the collapse of all three of the country’s major banks following their difficulties in refinancing their short-term debt and a run on deposits in the United Kingdom. (…) At the end of the second quarter 2008, Iceland’s external debt was 9,553 billion Icelandic krónur (50 billion euros), more than 80 percent of which was held by the banking sector. (…)

Iceland’s interest rates had been raised to 15.5 percent to deal with the high inflation, and the króna’s decline is reportedly only beaten by that of the Zimbabwean dollar. This depreciation in currency value put pressure on banks in Iceland, which were largely dependent on foreign debt.

quote: wikipedia

The Economist:

Iceland’s rapid rise and even faster fall has been viewed from afar as a parable of greed and hubris, in which a nation of farmers and fishermen borrowed too much and are paying the price. But that is to draw false comfort. Although Iceland represents an extreme case of a huge financial system towering over a small economy, other states suffer from similar imbalances. They differ only in scale, but not substance.

So, if the Italian media left you out of all this (but why?), here you can find some more information:

Kreppanomics from The Economist + A Meltdown in Iceland (what kind of TITLE is that?!?) from Time + Wikipedia entry

I hope things will get better for the Icelanders!

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