Posts Tagged ‘Economic Miracle’

Sick Of It All

Friday, October 23rd, 2009

On October 25th last year, I wrote the first EDA piece called Connecting the Dots Part I. After so many words, so many entries, its simplicity is striking;

David Oddson
used to be prime minister with

Geir Haarde
the current prime minister as financial minister representing the Independent Party where

Kjartan Gunnarsson
used to be the CEO and the party’s representative on the board of the nationalized Landsbankinn which was privatized to the lowest bidder

Bjorgolfur Gudmundsson

a member of the Independent Party who kept

Kjartan Gunnarsson
on the board of Landsbankinn and hired

Sigurjon Arnason
a member of the Independent Party as the bank manager who initiated the IceSave scheme in the UK while Landsbankinn’s business was monitored by the Central Bank of Iceland whose govenor was at the time was former prime minister.

And that was it. The essence of the Iceland that collapsed into the cold autumn of 2008.

I had a run-in recently with an economist who’s been working on saving the banks from the taxpayers. This economist who has been working on behalf of the government has no qualms about maintaining that write-offs in household debts would plunge Iceland into a deeper recession with a 50% tax rate and disastrous effects for the pension funds.

Meanwhile rumours of write-offs and re-organization for the well-connected are everywhere. Magnus Kristinsson, 50 billion, Karl and Steingrimur Wernerson 45 billion, Bjarni Armannsson 800 million, the owners of World Class Gym 1 billion, Morgunbladid 3-4 billion, Sjova, Baugur… Can someone tell us how Baldur Gudlaugsson, an average career-bureaucrat could amass hundreds of millions in Landsbanki shares? A business genius or just David Oddson, Geir Haarde and Kjartan Gunnarsson’s old friend?

There are few glorious winners and deserving heroes hiding in the North Atlantic Ocean these days. The Icelandic economic miracle was really the fairy tale of the Emperor Without His Clothes. The players who came out on top were the equivalent of diving, doping cheats. They now refuse to hand back their undeserved medals.

You get the drift.

For quite a while now, I have been absolutely sick to my stomach writing about David Oddson‘s and Hannes Holmstein Gissurarson, Bjarni Armannsson and Brynjolfur Bjarnason, Hreidar and Sigurdur, Olafur Ragnar, Karl Wernersson, Hannes Smarason…I should have written more about Hannes Smarason. I get mad when I read up on Halldor J. Kristjansson, Finnur Ingolfsson, Halldor Asgrimsson, Valgerdur Sverrisdottir and the Exista brothers. I want to throw sharp, heavy things at  cute little puppies when I hear about Jon Asgeir Johannesson, Halla Tomasdottir, Arni Sigfusson and Arni Pall Arnason.

But for me, the economic disaster is no longer about money but identity.

I have lost enough money. My mortgage has soared, its value no longer matches its capital. I have lost pension and some savings and I lose everytime I shop for anything in Icelandic kronas anywhere on Icelandic soil. I have lost two jobs, I have lost income and I have lost through high interest rates. I have lost government service and I am paying more for less all over the place.

Like most ordinary Icelanders I am a big, bloody economic loser.

Broken identity

But that is only money. I used to live abroad. And I have many friends and acquaintances abroad. And I read a lot of foreign media. And the verdict isn‘t good. Iceland kind of sucks.

Iceland is broke, bankrupt, doesn‘t pay its debts, doesn‘t accept responsibility and it is cold and dark.

Iceland is home to greedy, irresponsible, nepotistic, naive and corrupt people.

The legacy left behind by David Oddson, Halldor Asgrimsson, Olafur Ragnar Grimsson, Geir Haarde, Ingibjorg Solrun Gisladottir and the leading lights of their generations is that Icelanders find it more difficult to find pride in their country anymore. That has been taken away.

The national identity is broken. There are gaps and divides opening up everywhere. Left and right, extremists and non-extremists, haves and have not, those who took part and those who claim they didn‘t.

Any seriously contemplating Icelander who attempts to look at the events of the past couple of decades will surely realise that the national identity needs a rewamp. But what is needed is not so much a make-over as a massive construction.

Fruity little elfs

But Iceland is hardly in a constructive mode right now. Instead, the nation has become a parody of itself. Thirty-five percent of Icelanders have caught the Stockholm syndrome and would love nothing more than to bring the Independence Party back into power. The RUV news magazine last Sunday broke new ground on not investigating anything to do with the economic collapse. The people who lead the protests of last year have either fled the country or become parts of an unchanged system. Normal Icelanders are walking around like fruity little elfs popping happy pills, priding themselves of not watching news or reading newspapers because they “make one sad and angry“.

The fruity little elfs are shocked and scattered. They are organizing group hugs in Laugardalshollin and writing columns about looking forward not backwards, turning the other cheek etc. Meanwhile Hannes Holmsteinn Gissurarson has the gall to compare himself to the jewish persecuted by Hitler and billionaire Sigmundur David Gunnlaugsson thinks he is the victim of McCarthyism.

A friend asked if there had been any progress? Yes, the Independence Party is not in power, that is progress. People are laughing at, not with the Progressive Party, that is also progress. Eva Joly and the SFO are on the scene, that is positive. There is open, harshly debated discussion on meaningful matters within the government, that is progress.

But this is just one of those periods when you get sick of it all. I’ll get over it but these days it is nice just to concentrate on the good things in life. Where there is no room for David Oddson or Sigmundur David Gunnlaugsson.

Keep checking back, even if posting is a little less frequent these days.

An Ideological Threat

Thursday, October 8th, 2009
We discussed threats that are underneath the surface. An international threat does not necessarily have to break its way into your home carrying a gun to have serious consequences. It can appear as friendly older men on a television screen, saying that governments are not the solutions but that they are the problems. It can appear in the shape of a man of God who preaches intolerance towards minorities, or a media mogul whose broadcasts only tell his side.
Information matters and enligthenment matters. A popular joke during the Icelandic economic miracle was that if Steingrimur J. Sigfusson would become finance minister then Iceland would go bankrupt. A few words which protected a faulty system from criticism. There are more words about which can end any critical discussions, like „you are just a communist“ or „you are just a conservative pig“.
The argument can be made that the Icelandic economic collapse can partly be blamed on an ideology which so gripped society that it could not be critisized. That‘s how we all became guilty by association. And Iceland rarely cooks up its own ideology but imports it as with so many other things.
The government can support healthy and critical discussion by making  sure that  Iceland has an ambitious education system and ensuring a diverse media landscape. In the government‘s budget proposals this year, the education system is not spared the downsizing axe. A tiny increase in spending on education is explained by an increased supply of money to the Student Loan Fund. This is noteable, not least because direct government grants to the political parties themselves have been raised heavily in the last few years.
The government is also planning to put forward a new meida bill which hopefully leads the way to a diverse media. It should not be forgotten though that what we conceive of as media is changing rapidly and with the help of the internet you no longer need to be billions of kronas ahead to become a publisher.
The government itself must be careful not to only include pressure groups and special interests a seat by the table where decisions are made in Iceland. An administration that is more open and increased access to the government matters is needed. Currently a new banking system is being built upon the debts of Icelanders, without interests groups working for the public being consulted. At the same time, newscasts are shaking when big industries are asked to offer a helping hand in turning the tide.
In recession and during difficult times, the soil becomes fertile for extremists and demagogues. Icelanders should be wary of those in the years ahead.

From a seminar project that I took part in delivering today in a course at the University of Iceland:

We discussed threats that are underneath the surface. An international threat does not necessarily have to break its way into your home carrying a gun to have serious consequences. It can appear as friendly older men on a television screen, saying that governments are not the solution but that they are the problem. It can appear in the shape of a man of God who preaches intolerance towards minorities, or a media mogul whose broadcasts only tell his side.

Information matters and enligthenment matters. A popular joke during the Icelandic economic miracle was that if Steingrimur J. Sigfusson would become finance minister then Iceland would go bankrupt. A few words which protected a faulty system from criticism. There are more words about which can end any critical discussions, like „you are just a communist“ or „you are just a conservative pig“.

The argument can be made that the Icelandic economic collapse can partly be blamed on an ideology whose grip on society became so tight that it could not be critisized. That‘s how we all became guilty by association. And Iceland rarely cooks up its own ideology but imports it as with so many other things.

The government can support healthy and critical discussion by making  sure that  Iceland has an ambitious education system and ensuring a diverse media landscape. In the government‘s budget proposals this year, the education system is not spared the downsizing axe. A tiny increase in spending on education is explained by an increased supply of money to the Student Loan Fund. This is noteable, not least because direct government grants to the political parties themselves have been raised heavily in the last few years.

The government is also planning to put forward a new media bill which hopefully leads the way to a diverse media. It should not be forgotten though that what we conceive of as media is changing rapidly and with the help of the internet you no longer need to be billions of kronas ahead to become a publisher.

The government itself must be careful to not only grant pressure groups and special interests a seat by the table where decisions are made in Iceland. An administration that is more open and increased access to the government is needed. Currently a new banking system is being built upon the debts of Icelanders, without interests groups working for the public being consulted. At the same time, newscasts are shaking when big industries are asked to offer a helping hand in turning the tide.

In recession and during difficult times, the soil becomes fertile for extremists and demagogues. Icelanders should be wary of those in the years ahead.

Iceland exposed: How a whole nation went down the toilet

Thursday, October 1st, 2009
Although for a decade or so Iceland had imagined itself to be at the centre of the prosperous world, the crash propelled it back into the remote North Atlantic. Its pride was hurt. Icelanders were conscious that they had been steered incompetently and corruptly into the abyss. Yet the political class showed no remorse. David Oddsson — the head of the central bank, who as prime minister had presided over the privatisation of Iceland’s state-owned banks — was quick to blame the magnate Jon Asgeir and the oligarchs; Jon Asgeir blamed both the US for letting Lehman collapse and Oddsson for not responding intelligently; the Icelandic Government blamed the British Government.

At first glance I was surprised to see the section where the Times placed this article. Then after reading it I understood why. It is yet another spin on the tale that Icelandic women are now cleaning up the mess left by Icelandic males. In that context it is especially disturbing to see Audur Capital mentioned as the only Icelandic investment company that managed to escape the crisis. Halla Tomasdottir, who was very active in the boom years, for example in the Chamber of Commerce that ordered the Mishkin Report and Kristin Petursdottir, former top management of Kaupthing must have the best PR person in the world at their service for the Times is not the first foreign media to eat their story raw.  Although the business vikings were mostly males, there were plenty of women at work on the Icelandic economic miracle. Iceland is divided enough as it is, that it does not need such a division between the sexes as well.

Jonas Teaching Business Law and Corporate Responsibility

Saturday, September 5th, 2009

Fjalar Sigurdsson, a student at Reykjavik University’s MBA program has asked the university to relieve him from having to attend a course taught by Jonas Fr. Jonsson, the former head of the Icelandic Financial Authorities.

Jonas was the head of the Financial Authority in the years leading up to the economic crash and is seen as the epitomy of the institution’s dormant state through the “economic miracle”. Jonas got his position there on the strength of being an active member of the Independence Party. His father, former MP Jon Magnusson is now one of the applicants for the job of independent special prosecutor of the crash.

Reykjavik University’s rektor is Svava Grönfeldt who herself sat on the board of Landsbankinn during its control by Independence Party favorites Bjorgolfur Gudmundsson, Kjartan Gunnarsson and Sigurjon Th. Arnason, and while IceSave was being introduced.

The university has said that Fjalar is the only student who has complained about Jonas, and an independent review board from within the school has decided to stay the course with Jonas at its helm, citing his invaluable experience.

The course Jonas is teaching is Business Law and Corporate Responsibility.

The Continued Shame Of The Icelandic Media

Saturday, August 8th, 2009

Last night the newsmedia was filled with stories of violent activity by Saving Iceland members at the Ministry of Industry. Most of the headlines revolved around police being attacked with pipes and a policeman being kicked in the head.

Then this morning we get this video and a strong protest by Saving Iceland which states that the police is lying and there is no evidence of such violence. On the contrary, the police was the brutal party in the exchange.

But why did the media report from the incident in that way. Perhaps the answer lies here in this video where former Prime Minister Geir Haarde throws a fit when asked difficult questions from reporter G Petur Matthiasson who later apologized to the nation for not having shown this on the news when it happened.

Icelandic journalists are underpaid, overworked and always on deadline so they catch an issue, go and find someone who is an authority on the issue, hand them the microphone and allow them to make statements. If they cannot find a countering statement then they just leave it be.
That is how Geir Haarde, David Oddson and other politicians were able to bully the media for such a long time and that is why arguments countering the “Icelandic economic miracle” were so few and far between.
The reporting from yesterday’s skirmish is yet another shameful example of this. When you look at the video over an over again, you cannot help but wonder whether the woman will press charges for sexual assault.

Immortal Quotes From The Crash

Thursday, July 30th, 2009

It would be wise to keep a comprehensive list of the most memorable quotes from the economic crash in Iceland.

1. “You ain’t seen nothing yet”
- Olafur Ragnar Grimsson, president of Iceland ending a speech praising the Icelandic economic miracle in London 2005.

2. “God bless Iceland”
- Geir Haarde closing off his adress to the nation as the disaster is apparent. Icelandic politicians just don’t call for God and the surrealistic situation got even more absurd.

3. “Independence Party supporters just want to make money in the daytime and barbecue in the evening.”
- David Oddson’s Gollum, Hannes Holmsteinn Gissurarson explaining why their flock doesn’t want to spend their time doing critical thinking.

4. “You are not the nation”
-  Master of sensitivity Ingibjorg Solrun Gisladottir answers a desperate and angry crowd at an open meeting at Haskolabio. Only a third of the people who showed up could get a seat and the rest of the nation watched live on TV. The question remains, who is the nation?

5. “Absolute genious”
- Sigurjon Th. Arnason, CEO of Landsbankinn describing the IceSave accounts, just after explaining how he just has to sit back and watch the money flow in on his computer screen.

6. “Helvitis fokkings fokk”
- A protester’s sign catching the zeitgeist perfectly. A saying that will be a part of the Icelandic languague 500 years from now.

7. “Enviable future prospects”
- Edda Ros Karlsdottir and her staff of Landsbankinn’s analytical department on state of the Icelandic economy in September 2008.

8. “Má ég aðeins, let me talk to you, stop this…”
- Mar Masson, PR representative for Glitnir in an in interview with the Norwegian State Channel, finally faced with a reporter asking questions.

9. “We don’t pay the debts of scoundrels. My grandmother taught me that”
- David Oddson, talking about the Viking-raiders but unfortunately just after paying hundreds of billions into the money market funds and bankrupting the Central Bank by injecting mindless cash into the dooming banks. Cash that probably was taken away by scoundrels.

10. “I am lying, lying, lying, diverting, fooling you, lying, lying, diverting, drawing your attention elsewhere, lying, lying, hey what is that over there…”
- Illugi Gunnarsson, Independence Party MP well that’s not exactly what he said but that was the context of his tangled explanations about the rescue of Fund 9 at Glitnir where he was on the board. Still no journalists have tried to call his bluff.

11. “The EU is the new Soviet”
- Arni Johnsen, Independence Party MP and an old criminal.

12. “FLenron”
- David Oddson about FL Group in 2007, only months after his party had accepted 30 million ISK in donations from the company on the day before new fundraising law was supposed to be enacted.

13. “A fantastic conclusion”
- Steingrimur J. Sigfusson, speaking a little bit too early about the IceSave deal.

Please offer your input if you remember any good ones…

Sticking Us With The Bill

Tuesday, July 28th, 2009

Now that they are safe with the money they managed to transfer abroad, the chief architects of the Icelandic “economic miracle” are leaving the country. So no help with the IceSave bill from them.

Hannes Smarason and Bjorgolfur Thor have been hiding in London and Cyprus according to the media. Bjarni Armannsson ran away to Norway last year and is now investing his loot in the UK. Jon Asgeir Johannesson is trying to get into the fashion game in the US and now Hreidar Mar Sigurdsson is opening up a consultant business in Luxembourg, conveniently located when you think about where all the money went from Iceland.

Halldor J. Kristjansson of Landsbankinn is off to Canada to run a bank. Brace yourselves, Canadian savers.

Good riddance and thank you for sticking us with the bill.

No Justice, No Fairness, No Society

Monday, July 27th, 2009


When I was a student at a university in the US, the women’s soccer coach was fired from his job for pushing a player. This despite his record of leading the team to the final four in consecutive seasons. This was eight years ago and he still hasn’t been able to find another job as a soccer coach since.

I have coached soccer on the side for seven years and now have a UEFA-A coaching licence. When I lost my second job at the second doomed company I worked for last year I was offered a full-time coaching position at the club I’d been working for. I absolutely love the change from working on the “Icelandic economic miracle”.

But sports can offer a reflection of the society we live in. And during a U-16 game earlier this year an incident happened, with consequences that are in hindsight typically Icelandic. With just over 15 minutes played, the referee warned the players that he would start calling wrong throw-ins. Tensions were high, as the two teams were neighbors with a bit of rivalry. The next throw in was for the opponents but the player made a wrong one. When the referee made the call, the 27 year old opposition coach ran onto the field and gave him an x-rated earful. The ref answered with a harsh warning and play resumed. The ball went upfield where my winger was pulled down by a marker right next to the other team’s substitutes’ box. The coach lost his rag and kept shouting obscenities at the referee who then showed him a red card.

What happened next is ugly enough in a sporting context but keep in mind that the players on the field were 14-16 year olds. The coach kicked the ball full force into the referee and then proceeded to hit him in the side. Leaving the field he threatened to wait for him and kill him. Play resumed in a tough but fair match which was incidentally won by the opposition, 1-0 with a goal three minutes from time.

The aftermath might explain a lot about Icelandic society and why crimes do go unpunished and people in position of power never resign.

The referee and the linesmen left the field into the clubhouse to fill out the FA forms. While discussing the incident, the coach popped up from behind a counter where he was hiding and pleaded with them to not include this in their report. He told them he was on some sort of a probation within his club. Later it turned out that two weeks earlier there had been a meeting adressing similar sort of behavior on his part.

The referee was still in a state of confusion, and to add to the complexity of the situation they knew each other a little bit. So the referee wrote on the FA form that the coach had received a red card but did not describe the incident. The next morning, Channel 2 had a report on it. The referee contacted the Icelandic FA which asked for a more comprehensive report which he proceeded to write with the two linesmen. Parents at the game had also called the FA with complaints about the behaviour of the coach.

Then the Icelandic way of dealing with these kind of things took over. Officials from the coaches’ club who were at the game tried to make it look like it wasn’t as bad as described. Then the coach was interviewed on a popular radio show where he told everyone that this had been blown out of proportion and that he was somehow a victim of a smear-campaign. Then he hired a lawyer.

Normally in soccer when you hit a referee, let alone twice you can expect at least one year’s suspension, and in some cases life. Respectable clubs do not hesitate in firing coaches who resort to this kind of behaviour. But the coach and his lawyer spotted a loophole. According to strict interpretation of the Icelandic FA’s laws, only the referee’s official match report can be used as evidence. So the report was deemed invalid and he got away with a one-month ban, just in time for the official season.

His club fumbled about and removed him from the U-16 position, but he remained as their U-14 coach. Why? Because he had coached them from a young age and they were doing so well. Notably they have such talent in their ranks that any half-decent coach should be able to turn them on. Then there were stories about him having experienced difficulties in his life etc.

The referee who could have pressed criminal charges against him for assault didn’t because he thought the FA would hand him a fair punishment. Afterwards he just didn’t want anything more to do with the whole thing. And now three months later the guy is back on the bench with the U-16 team although another coach is there in the name.

So how is this relevant to the Icelandic economic situation?

-    Unruly behavior is often swept under the carpet in Iceland. A drunk man who hits someone is dragged away by his friends, who excuse his behaviour with the amount he’s had to drink or some sort of incident which is supposed to justify it, a divorce, a death in the family etc. No expense is spared in making the victim feel guilty if he tries to prosecute the offender. That is why Glitnir CEO Birna Einarsdottir tells a sobbing story of cancer and her home being splashed with paint in this weekend’s DV. That is why the former owners of the banks talk endlessly about people’s ire affecting their poor families. That is how Bjorgolfur Gudmundsson managed to play himself a “victim” after being sentenced in the Hafskip scandal in 1980’s and returning as a prodigal son of the Independence Party to acquire Landsbankinn, through a company called Samson no less.

-    When official institutions try to do their job, they are confronted with agressive lawyers who will shamelessly pull any trick in the book. For the FA in this instance, read the Financial Authorities. And now the Bjorgolfur father and son destruction team has issued a statement excusing the incredible loans made to them through Landsbankinn with technicalities.

-    Interconnectedness skewes the picture in difficult matters. It was understandable that the referee felt sorry for the guy he knew and therefore excused his behavior to begin with. And here you can echo the accusations made by Eva Joly towards Valtyr Sigurdsson, State Prosecutor whose son is a CEO of Exista. Valtyr just doesn’t get it, too many in Iceland don’t, and even more use it to their advantage.

-    With great powers comes great responsibility. And from a crappy movie come great words to live by. The coaches behavior was outrageous on every count, but his players, all under the age of 16 were not told by their parents or officials of the club that this had been wrong. Instead they were quick to make excuses for him and they had him exalted to a victim’s status in no time. He has never made an apology to the opposition for his behavior. By allowing him to continue, his club and the parents of the players have taken a stand against respect for the game, and with violence and disrespect towards referees.
Resignations have been few and far between since the economic crash. Before the crash Icelandic politicians just did not resign. Gudmundur Arni Stefansson, MP for the Democrats resigned in the 1990’s and was rewarded with an ambassador position, from the opposition party leaders. Arni Johnsen, MP for the Independence Party was forced to resign earlier this decade for embezzlement but after serving time he went to audacious lenghts to get a pardon and his “honor restored”, unusal for anyone who’s served time in Iceland but easy when your friends hold the executive powers. Bjorgvin G. Sigurdsson was asleep as a Minister of Commerce last year and resigned the day before all hell broke loose in January, most likely to play the resurrected victim in the next parliamentary elections. In which he succeeded.

Unfortunately the way the country deals with its bullies and criminals is dangerous to the society. When pillars of justice, fairness and responsibility are constantly being bombarded, it is no surprise to see the foundations collapse as they have and will continue to do so if not addressed correctly.

Too proud for help, not anymore

Tuesday, July 14th, 2009

The people of Iceland are being punished for the misbehavior of the countries financial elite

This might come as an surprise to some, Iceland had its share of financial elites, I say had because they are all gone now. Most of them are running away as fast as they can, trying to move all valuables to tax-havens before the government puts a freeze on there assets. Yes, the government of Iceland has yet to freeze any assets since the banking crisis hit almost 10 months ago.

The world never stops to let me down, everything is falling apart, there is no trust left anywhere. Even the Social Democrats who came into power only a few months ago, when Iceland elected its first pure left government, have done nothing but let us down. From a fresh breeze to a rotten old smell of disgusting politics, only a few days are needed to turn a group of decent parliamentarians into pale blood sucking pack of scumbags.

Last summer, If anyone had asked my if Iceland needed help I would have laughed in their face. Help? We don’t need anyone, we have everything right here and more. The investigations into the collapse is going slowly, but these things are complicated, that’s why we have imported help from Norway in the form of Eva Joly. Right now, that’s all the hope I have left in the system, it has come down to a single person almost. If Eva Joly can’t get those bankers, no one can.

We can’t wait for the EU membership, that thing takes years, and why should Iceland join the EU anyway? The other Scandinavian countries have turned there back on us. No help from there, unless we agree to pay billions for the Icesave accounts. Its a fact, the regular Joe’s of Iceland had no clue how the Icelandic banks could offer better interest rates then Deutsche bank. We can’t pay anyway, its just too much for tiny Iceland. The Icelandic Economic Miracle was all a big shame, we know that now, sorry. Please don’t let us pay for the sins of a handful of bankers. They had us for fools.

- Andri Sigurðsson

Us And Them

Friday, July 3rd, 2009

The worst thing to come out of the Icelandic economic miracle was the upper-class that all of a sudden existed out of nowhere. Private jets were a rarity in Iceland before 2000, in 2007 they were the preferred ride of bankers, businessmen and politicians. Only a few oddballs and gays had heard of Philip Starck in 2000, while his name was dropped constantly in 2007. In 2000 a colleguae at work asked if I wanted to share a lunch, in 2005 I was asked if I wanted to share in a winery in South of France.

Where did the money come from?

If you want to believe in the stories  of captive capital being set free, then it only explains half the story. A handful of businessmen used the banks as their own private printing presses for money. If Bjorgolfur Thor wanted money for a leveraged buyout of Actavis, who in their right mind at Landsbankinn would say no? It was the same at Kaupthing and Glitnir. Then when they’d sucked the banks dry they turned towards the Savings & Loans, exhausting their reserves.

And the politicians played along. We have already heard of Bjorn Ingi Hrafnsson, Progressive Party spinster, assistant to Halldor Asgrimsson and former great hope loan at Kaupthing to buy shares without any risk to himself. And in DV’s revelations earlier this week, Kristjan Arason, CEO of Retail Banking at Kaupthing owed the bank just under 900 million he’d borrowed to purchase shares in the bank.

Putting aside the obvious masquerade regarding the bank’s equity with those kind of deals, how ridiculous is this creation of an upper-class that has access to loans of hundreds of millions that can make them silly amounts at no risk at all?

Worse, Kristjan is the husband of Thorgerdur Katrin Gunnarsdottir who was the Independent Party’s vice-chairman and Minister of Education in Geir Haarde’s government. In the temporary absence of Geir, Thorgerdur Katrin was the acting Prime Minister last summer when asked about Merril Lynch’s Richard Thomas’ quote about the shaky state of Icelandic banks. She snapped back, asking what cruel intentions were behind Thomas’ statement.

The whole affair is a testament of how deeply sick Icelandic society had become. The government that privatised the banks being granted astronomical amounts in risk-free deals that made the whole merry-go round spin. Until the wheels fell off, of course.

Thorgerdur is still the vice-chairman of the Independence Party and still in parliament. Her family’s loans have been dropped by its bank. Meanwhile the rest of us are allowed to…yes you guessed it…smile and pay.


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