As overdue because the mid Eighties, Iceland’s financial system revolved round little else than a semi-robust cod-fishing undefined. by means of the top of the century, although, it had remodeled itself right into a significant participant in global finance, construction a world banking empire worthy twelve occasions its GDP. The tiny island country of 300,000 used to be one of many worldwide economy’s nice good fortune stories.
And then every thing got here crashing down.
Why Iceland? is the interior account of 1 of the industrial meltdown’s such a lot interesting and far-reaching tragedies. As leader Economist of Kaupthing financial institution, the country’s biggest financial institution ahead of the cave in, Ásgeir Jónsson is ideally suited to check Iceland’s cave in in painstaking aspect. He witnessed behind-the-scenes occasions firsthand, akin to an exciting assembly in January 2008 while a gaggle of foreign hedge fund managers amassed in a bar in Reykjavik to debate Iceland’s economy―an casual affair that finally turned the guts of a legal research via the country’s monetary Supervisory Authority.
This within account examines the urgent concerns at the back of history’s largest banking collapse:
- How did Iceland rework itself from one in all Europe’s poorest to 1 of its wealthiest international locations?
- What occurred to reason the destruction of the nation’s banking in the course of a unmarried week of October 2008?
- Was it the results of a hypothesis “attack” through hedge money at the nation’s currency?
Iceland continues to be the most important casualty of the industrial downturn, and the ramifications of its catastrophic failure achieve deeply into the economies of Europe, the U.S., and different worldwide markets. Ásgeir Jónsson deals a different viewpoint and an expert’s perception into the increase and fall of this once-proud banking giant.
Why Iceland? presents the who, what, the place, and whilst of Iceland’s loss of life, serving as a desirable learn and offering the certainty helpful for forecasting whilst and the place the aftershocks will shake up markets in different elements of the world.
"Fearsome Vikings stumbled on Iceland. Hedge cash knocked it down. It was once a humiliating tumble for the previous monetary powerhouse, which used to be pleased with its prestige in Europe. A past due bloomer, Iceland were the final kingdom in Europe to be settled, the Nordic state quickly stuck up with its wealthier kinfolk. It was once all positive until eventually October 2008, while country's banking process collapsed in every week. Written by means of an Icelandic economist, Why Iceland? chronicles the meltdown, within the context of the nation's history."--New York Post (A "Required analyzing" Selection)