Iceland bankrupt

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• Located : latitude 65 degrees, longitude 18

• Belonging within the Nordic• Land area : 103,001 square

kilometers• Capital : Reykjavík• 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

ICELAND’S ECONOMY • The mainly dependent

on marine fisheries. Fishing accounted for 60% of export earnings in Iceland, employs 8% of workers.

Financial Tsunami• 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 (2004–2006)

Bankruptcy( The Process )• 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%

Why Bankruptcy??• 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 Alþingishús , seat of the Icelandic parliament , on 15 November 2008.

~Conclusion~ • 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.

Do you have any questions??

Thank you for your listening~~