Isu10178011a Ben

Isu10178021a Oscar
Isu10178032a Hank
Located : latitude 65
degrees, longitude 18
Belonging within the Nordic
Land area : 103,001 square
kilometers
Capital : Reykjavk
Population : 321,857 people
Religion : Protestantism
National accounts : 63830USD
Currency : Icelandic Krona
High island
Rich in geothermal
resources, Hot Spring
widespread.
Volcano Hot Spring
Geothermal Resources Aurora
The mainly dependent on
marine fisheries. Fishing
accounted for 60% of
export earnings in Iceland,
employs 8% of workers.
Cause : The bursting of the U.S. housing bubble,
which peaked in 2006,caused the values of
securities tied to U.S. real estate pricing to
plummet, damaging financial institutions globally.

1. High-risk mortgage loans and lending/borrowing
practices
2. Boom and bust in the housing market
3. Mortgage fraud and predatory lending
4. Inaccurate credit ratings
Growth in mortgage loan fraud based
upon US Department of the Treasury
Suspicious Activity Report Analysis.
U.S. Subprime lending expanded
dramatically (20042006)
Oct ,2008 The prime Minister Bernhard declared a state of
bankruptcy
After the crisis , the assets of the three banks all nationalized
Iceland Krona depreciated 63 percent against the euro in the
international market worthless

Credit bankruptcy, countries do not accept ISK Iceland also freeze
Bank assets abroad

Unemployment rate rose to 10% from 1%, 1/4 financial people will be
laid off
Serious inflation, the price rose to 14%
The three main factors contribute to bankruptcy.

1. High level of government borrowing.
2. Large number of foreign investment.
3. Overheated consumer spending.


The three main factors make Iceland in illusion of
prosperity in past , but now these three factors are the main
culprit of the crisis in Iceland.
Some of the 6000 protesters in front of the Alingishs ,
seat of the Icelandic
parliament , on 15 November 2008.
Originally the world that "the world's happiest country"
Iceland, even in the overnight fall into hell among
countries facing bankruptcy. Go into the reason for the
bankruptcy of Iceland, which may be able to discover the
culprit, and as Taiwan to follow.

Iceland has now taken over the country's three largest
banks, the Prime Minister also admitted that the country
is not suitable for small open economies excessive,
perhaps this is central to the current pursuit of Taiwan's
Asia-Pacific financing a good warning. Look at Iceland,
ask yourself, from Iceland who perhaps we can learn
something.