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

[koganbot]

Well, if things turn out reasonably well, it looks like your Gordon Brown will have been one of the chief heroes. So will have Connecticut Senator Chris Dodd, who was born in Willimantic, eight miles south of where I grew up (though born 10 years before I was).

[freakytigger.livejournal.com]

Thing is, if he's recognised as a hero at all (and "repentasnt sinner who does the right thing in the end" would be the story I guess) it might be too late for him - the UK will end up in a nasty recession whatever and it won't be over by 2010, which is the latest he can call an election. So "reasonably well" probably won't be enough to save him electorally.

[dubdobdee.livejournal.com]

maybe cod war 2 will be his falklands :\