Exposure to Ice

[koganbot]

Krugman recommends Across The Curve, a blog by bond trader John Jansen (though Krugman himself has to look up some of the words, he says).

someone else mentioned to me that the debacle in Iceland might have implications in Scandinavia. The logic is that some of the big Scandinavian banks probably have large exposure to the Icelandic banks. It would not be a surprise to observe one of the Scandinavian banks emerge with more exposure to Iceland than anticipated.

In this environment, the market would punish that behavior severely.

By the way, my flist being strangely silent about this once-in-a-lifetime* financial crisis, is ILE having good convos on the subject? I haven't checked yet. (I mean, good for its attempt at economic thought, not just good if you're interested in the sociology of ILE.) In general, where are you guys going for conversation about the crisis?

*Or at least first-in-my-lifetime big-size financial panic.

Comments

[alexmacpherson.livejournal.com]

wheeee down down down we go. looking at those graphs actually makes me a bit light-headed.

I think RUSSIA has effectively conquered Iceland now!

[koganbot]

Seems as if Russia may not be rich enough to conquer Iceland after all, so the IMF will have to come charging in. (Iceland's biggest fear is that it will turn out too insignificant to conquer. But the world being what it is, no one and nothing is insignificant. Hurray, globalization.)