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Kynes on 22 November 2012
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Scisca said:
Kynes said:
pezus said:
Kynes said:
pezus said:
Not sure how well this reflects a company's prospects, but wasn't Iceland put in a "junk" group not so long ago? No surprise that I had to sell my house and be content with the igloo in the backyard


Iceland defaulted and didn't pay its debts on time. That's why it was considered junk, and that's why Sony is considered junk, because there is a high possibility of non paying its debts.

Iceland didn't pay because they didn't owe anything. It was just the UK trying to push the little country around with hilarious results.

That's not what the IMF thinks. You know your banks are paying, right? Better late than never.

As it turns out, Iceland was right. We're still struggling with our crisis, while they have been blooming again for quite some time already. Had they listened to IMF, they'd still be drowning even worse than Greece is.

 

I hope Sony get's everything straight! In order to help, I'm getting my Vita next week! :)

Greece, as Spain, Portugal and Italy problem is that their government spend much more than they tax their citizens (Keep an eye in France, it's the next one who is going to have the same problem). Iceland problem was a monetary one, they had a much higher lending rate than UK or the Euro zone, so foreigners put their money in Iceland Banks. Their banks had a passive several times higher than their GDP.

We have a public debt crisis, Iceland had a private debt crisis (Irish problem is very similar to Ireland, that's why I haven't mentioned them with the PIGS)