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Re: [Pen-l] Iceland



The Icelandic banks were lending in the USA and in Europe.  Elsewhere?

Gene Coyle
On Dec 26, 2008, at 10:14 PM, michael perelman wrote:

I'm trying to understand today's story in the Wall Street Journal about Iceland. The article says that the banks were offering more than 7% interest on deposits and the Icelanders were borrowing money cheaply from places like Japan. To whom were the banks lending at rates substantially more than 7%? Or were they just using the funds to speculate on a domestic bubble?
--
Michael Perelman
Economics Department
California State University
Chico, CA
95929


530 898 5321
fax 530 898 5901
http://michaelperelman.wordpress.com
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