Risk Rap

Rapping About a World at Risk

St. Michael Save Us!

Michael_Jackson_an_angel_by_Ice_BeatMichael Jackson is now one with the ages. MJ’s passage from this earth marks the death of an American hero and the birth of an angel or possibly a saint. MJ now joins Elvis and Princess Di to complete a divine celestial trinity.

First there was Elvis, The King. The American dream and the innocence of an age dies way too young. No worries, Col. Parker transforms it into the tragic legend of an unsullied Americana that refuses to die even as its mummified corpse lying in state at Graceland continues to twitch from all the amphetamines old Elvis consumed during his historic run in Vegas.

Elvis, the everyman saint. Rising from the humble estate of a Mississippi delta dirt farmer. Elvis would conquer the hearts of his countrymen with sweet southern charm, an impish smile and an untamable shock of hair that flipped when his hips rocked. His love me tender silky voice had the power to weaken every woman’s knees. Countless men would also be curiously drawn to emulate his persona by adopting the vain King’s more frilly affectations. It was a curious example of socially acceptable homo eroticism in a don’t ask don’t tell and certainly don’t show society.

Princess Di, The Lady of the Lake, would follow Elvis. Her story genuinely tragic because her violent demise was not her doing. Her story truly the stuff out of a very Grimm fairy tale. A more gorgeous Cinderella could not be found. Yet her unprincely prince yearning to free himself from under the shadow of a perpetual queen would flummox his princess bride. It would doom this marriage and force the affection starved Princess into the arms of another. This fairy tale did not end well for the defrocked Princess. Her loyal subjects refused to let this very contemporary aristocrat descend to the pedestrian status of commoner. Her minions jealously guarded the memory of this royal icon. They sought to affirm personal fantasies that attaining royal status, though remote, is a possibility; and that beautiful benevolent monarchs are real people like them who deeply love and identify with their daily trials. Devoted Britoners make pilgrimages to her final resting place that is worthy of Queen Guenevere. Pricess Di is entombed on an island in an ornamental lake known as The Round Oval. The lake is located in Althorp Park’s gardens the ancestral home of Princess Di’s family. The Round Oval is surrounded by a path with thirty-six oak trees, marking each year of her life. Princess Di’s constant sentinels are four black swans that swim the lake amidst water lilies, which, in addition to white roses, were Diana’s favorite flowers.

MJ’s beatification will proceed abetted by fawning fans, a complicit family and entertainment media moguls eager to do large licensing deals to insure that royalties continue to accrue to the King of Pop estate and its agents. His veneration will address the American peoples deep seated need and unending capacity for hero worship. This need is only exceeded by our driving compulsion for instant gratification through gluttonous consumption. For many, this is the principal freedom promised to any and all Americans; an inalienable right to satiate any whim or whimsy money can buy. Nowhere in recent memory do these character deficiencies coalescence so neatly as they do with MJ.

The voracious consumption of culture knows no bounds. Like every other aspect of American life, culture as a commodity is the only culture we know. Radical capitalism has so thoroughly reified itself into the fabric of our everyday life that we find it increasingly difficult to imagine or experience human relations or interactions outside of a commercial transactional exchange. MJ significant buying power purportedly allowed him to bleach his skin, remove a negroid nose, purchase a triptych of white kids, fiance a voracious prescription drug addition and allegedly engage and cover up pedophilia activities.

MJ’s life was the triumph of consumer capitalism. Marketing changed and created MJ and the idea of MJ. From his very first appearance on the cover of Tiger Beat magazine as a member of the Jackson 5, to the ghastly image of his corpse filled body bag being offloaded from a helicopter on its way to the city morgue; MJ was a commercial vehicle, a marketing juggernaut that enriched a multitude of people, fattened his bank account and tormented and robbed his soul.

Yes MJ could have anything and everything money could buy yet he found no peace. This mythic figure created, manufactured and marketed by immutable corporate institutions seeking to seamlessly bind our mind and soul to an existential dream of material opulence in reality is much more the nightmare. It is more akin to imprisonment in a gulag of Walmarts; then the elusive personal liberation tantalizingly dangled by the broken promises of consumer capitalism. MJ’s death truly signals a hair on fire moment for our culture and no metaphor could be more powerful then his Pepsi commercial shoot gone bad.

Our myths instruct us to hold on to our Valium and amphetamine addicted lifestyles. Its the price we must pay to work and acquire the things that hold the illusory promise of freedom. We need heroes to emulate. It fuels our Viagra driven power surges in a queer transference. Its how we escape our daily pedestrian dread. It is how we live to converse with the God’s if only for a few fleeting infrequent moments allowed by the running meters of consumer rapture.

Here we are led to believe that after a heavy day of fighting the power, misogynistic rappers guzzling Christal and lighting Cuban spliffs with hundred dollar bills are the just rewards for speaking truth to power and taking on the man. Madison Avenue business is the creation of virtual mythology.

MJ’s career trajectory perfectly captured the arch of American culture since the Viet Nam war. The perfect antidote to The Black Panthers and Malcolm X, the cutesy Jackson 5 were acceptable Negroes welcomed in all white American living rooms as they stomped on Ed Sullivan’s TV Show. To the final funereal spectacle complete with a homily by Rev. Al Sharpton offering MJ apologetics and the Afro American Hollywood bourgeoisie rolling up to the Staple Center in a caravan of Black Danalis perfectly captured a peculiar resonance of Barack Obama’s America. MJ always at its epicenter. Placed their by the power of Madison Avenue media mavens and blockbuster Tinsel Town agents.

CNN was crowing how this event was about the common folk. Not the stars or glittering sequined gloves worn by MJ pallbearers. Elvis was a Horatio Alger type story. Princess Di let us fantasize about our royalty as we sat in our personal castles of over mortgaged homes cluttered with Rubbermaid artifacts. MJ was evidence of the triumph of marketing and the divinity of packaged consumer capitalism. Look again at the man in the mirror. Let it reveal how consumer fantasy makes every man King and each day a coronation through the availability of fast and easy credit.

Joseph Campbell wrote in The Hero Has a Thousand Faces “Wherever the poetry of myth is interpreted as biography, history, or science, it is killed. The living images become only remote facts of a distant time or sky. Furthermore, it is never difficult to demonstrate that as science and history mythology is absurd. When a civilization begins to reinterpret its mythology in this way, the life goes out of it, temples become museums, and the link between the two perspectives becomes dissolved.

As the world begins its frantic search of Travelocity for deals for a Hajj to the Neverland Ranch, some might recall St. Michael the Arch Angel who cast Lucifer out of heaven. MJ will be St. Michael the Second. It may be an ironic twist of fate that MJ will hold second billing for eternity to an Arch Angel portrayed by John Travolta in the film Micheal. I’m sure his publicists are busy planning a PR campaign to rearrange the celestial order of things.

You Tube Music Video: Gil Scott-Heron and Brian Jackson: Madison Avenue

Risk: culture, capitalism, marketing,

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July 30, 2009 Posted by | branding, commerce, commodities, culture, democracy, institutional, manufacturing, marketing, media, movie, pop, product, reputation | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

We’re So Sorry: Please disregard previous e-mail received

We pushed the wrong button.

Please delete e-mail for blog post entitled Ghetto of Fear.

Please send to waste basket.

We sent a post Ghetto of Fear while only half baked, not ready for prime time and still being distilled and formed in a gelatinous mind of Sunday morning mush.

Please disregard.

We are looking to complete Ghetto of Fear post for tomorrow.

We apologize for the intrusion, false alarm and for unnecessarily rising your expectations only to let you down in a swamp of pseudo journalistic malpractice.

Better stick with my day job.

Please enjoy the song.

You Tube Video: Paul McCartney, Uncle Albert/Admiral Halsey

Risk: That is why they put erasers on the end of pencils.

January 25, 2009 Posted by | pop, risk management | Leave a comment

The Terrorists Win

Banksy

As the United States begins an extended celebratory weekend to commemorate and honor the historic election of Barack Obama, the nation seems swept up in an immediate and intimate sense of history in the making. Most Americans are hopeful that the Obama Administration will turn a page on the damaging partisanship, fear mongering and narrow ideological rancor that has been the hallmark of recent Washington politics.

Millions of citizens are expected to make a pilgrimage to the citadel of world democracy to witness and participate in this historic event. Our nation has invested much hope in this man to turn the page and the fortunes of our nation around. The United States and the world are eagerly watching, praying, anticipating, eager to touch, experience and witness this event. For the rest of our lives the question will be asked, where were you on the day Obama took office? What were your thoughts? What was your opinion about what he said during his inaugural address?

For children in the Oakland Public Schools the answer will be sitting through another nondescript day of classes because the school board has prohibited the live viewing of the event due to fear that something bad will happen. I am unsure and very dismayed about where this type of thinking comes from. God forbid if something terrible does happen; the teacher can quickly turn off the TV to protect the students from witnessing any bloody carnage that may occur if terrorists do strike.

Its most unfortunate to deprive our children of witnessing this historic event. The peaceful transformation of power is a vital event all Americans should witness in order to understand and appreciate its deep significance for the freedoms a democratic republic offers. The Oakland School Board has ceded an opportunity to offer its students a once in a life time learning experience due to an overriding fear of terrorism. Fearful people are not free people. Its a lesson that the Oakland Public Schools need to learn.

The terrorists win this one.

You Tube Video: Dusty Springfield, Spooky

Risk: education, psychology

January 17, 2009 Posted by | Banksy, education, government, pop, psychology, terrorism, TV | , , , , , , | Leave a comment

Corporate Extinctions

A large meteor that hit the Yucatan peninsula 65 million years ago is considered one of the causal factors that led to the mass extinction of the dinosaurs. The theory gained wide acceptance after a photogemmetric satellite captured the image of the Chicxulub Crater centered just off the peninsulas northeast shore. The meteor theory seemed to solve the dinosaur extinction mystery of how a dominant species that ruled the earth for 200 million years can suddenly disappear. Apparently the theory suggests that the extinction happened more with a bang then a whimper.

Like the Chicxulub meteor, the economic crash of 2008 promises to claim a dramatic toll of corporate victims and drastically alter the landscape of the global capitalist system. The casualty list prominently includes some marquis corporate banking brands like Bear Stearns, Lehman Brothers, WAMU, Wachovia, Fannie, Freddie, Fortis, RBS, NorthernRock and threatens to claim the solvent souls of a UBS or Citibank. The State of California and the Sovereign State of Iceland are also endangered and the economic crisis may claim them as its biggest prize.

Hedge funds are quickly folding up shop. Morgan Stanley estimates that the AUM of the industry may shrink from $1.9tr to $900bn due to market losses and investor redemption and withdrawals. At its peak the global hedge fund industry was estimated to offer AIM products by over 6000 providers. By the close of the next year the size of the industry will be considerably smaller as capacity downsizes to serve less demand. Downsizing will also be the prevailing theme for community banks, RIA’s and CTA’s as excess capacity is worked out of the system through closures, consolidations and seizures. This contraction will effect industry service providers that sell services to the financial services market. Lawyers, accountants, IT providers and consultants will be hard pressed to maintain their book of business as the market for their services contracts.

Free marketeers and Social Darwinists may find it right and fitting that the financial services industry comprises the bulk of the corporate casualty list due to their culpability in nurturing this economic apocalypse and their proximity to the epicenter of the crash. The Hollow Men who led the US economic colossus to this dramatic self immolation however won’t have to fall on their swords. Their champion in the Treasury Mr. Paulson has swaddled them in a protective TARP so these masters of the universe can don superman capes to continue their selfless endeavor of saving the US economy from a total collapse.

Unfortunately the deadly meteor that almost liquidated the banking system is spreading outward to what some refer to as the real economy. Goldman Sachs’ indicates that the recession will shave a cool $1.3tr from the GDP. This will inhibit buying power by individuals, corporations and governments. Some economists fear that this will create enormous deflationary pressure prolonging the recession. Many see similarities with the Japanese recession of the 1980’s. That recession brought on by the burst of Godzilla sized real estate and equity market bubbles lasted for over a decade. Japanese central bankers cut interest rates to almost zero and the vicious downward spiral of the economy recovered as a result of SE Asian and North American market demand drivers that fueled tremendous export growth.

Retail is another sector that will be particularly hit hard by corporate failures. Industry statistics indicate that 14,000 retailers are expected to close their doors during the next year. US auto dealerships from the Big Three are expected to contract by 25%. The auto industry is a major hub of a large and intricate manufacturing supply chain and as such this sector will be hit hard with business closures as well. Construction, housing and domestic oriented leisure industries will continue to stagnate as the American consumer buying power evaporates. Not good news for an economy so strongly dependent on consumer spending.

Yesterday the National Bureau of Economic Research (NBER) announced that the economy went into a recession in December 2007. Its a bit funny that it took a year for the NBER to hear, feel and detect the Chicxulub Meteor that crashed into our economy. Today’s Employment Report from ADP indicates that the US economy shed another 250,000 jobs during the month of November. Now that the reality of the recession is upon us the corporate endangered species list will be a pressing problem and success metric that the Obama Administration will need to squarely address with any stimulus package he plans to enact to get the economy moving again. This actually bodes well for the passage of a rescue package for the Big Three Automakers. One thing is certain, urgent action is required or our economy will continue to go down not with a bang but with a whimper.

You tube video: Ranny Weeks and Orchestra: Out of Nowhere

Risk: recession, bankruptcy, solvency, rescue package, economic stimulus

December 4, 2008 Posted by | banking, bankruptsy, Bear Stearns, economics, Paulson, pop, unemployment | , , , , | Leave a comment

The Wasilla Hillbillies

It is said that success has a thousand fathers and failure is an orphan. So its not surprising that as the McCain campaign came to its blessed end no one wanted to be blamed for the train wreck. Indeed the professional class of campaign elites that handled the failed republican bid for the presidency was looking to pin the progeny of McCain’s homely orphan on someone. Sarah Palin was again called to the service of her good party to take one for the team.

Much is being said about the Wasilla Hillbillies plundering Neiman Marcus from coast to coast. Much is being said about Palin’s confusion about weather Africa is a country or continent, what North American countries are NAFTA signatories and her refusal to prep for TV interviews and the resulting gaffs due to the lack of preparation. Fair enough. However I believe that most American’s couldn’t answer those “tough” questions by the liberal gotcha media and given the chance at a free coast to coast shopping spree would act in a similar if not more covetous fashion.

What really must be asked is who is responsible for anointing Sarah Palin to assume the office of VP? McCain’s Country Firsters, whose unfathomable depth of love for country is understandable only by God, insisted that Ms. Palin was the best person to sit in the office one heart beat away from the presidency. The Country Firsters erected the cult of Palin to solidify its right wing base and appeal to a broader populist mass of hockey moms, Joe Six Packers and Joe the wanna be plumber. The Republican Party does this every four years. At election time, the party of power and privileged elites comes before the electorate like a wolf in sheep clothing. They play on populist sentiments and fears. They viciously attack democrats as lesser American, non Christian, unpatriotic liberal elites whose sole purpose is to excessively tax the salt of the earth working people to send welfare checks and social assistance to the slackers of society.

Now that the election is over the republicans have no need to curry favor with the lower class rabble whose votes they need to remain in office. The deification of Palin is a cold slap in the face of an electoral sector that allows itself to be beguiled by a political machine to support a program that is painfully at odds with its own self interest.

Palin’s deification also signals a badly split republican party. Mitt Romney for example, has the social conservative credentials to appeal to Palin’s peeps with the glaring exception of his Mormon faith. The rejection of Romney as a suitable candidate speaks volumes about the religious bigotry rampant within the Republican Party. The Christian Rightists will righteously eat their party’s own out of bigoted zeal while rejecting apostates communion wafers offered at the Lord’s Table by mainstream Christian denominations. This party needs a reformation. Perhaps a Martin Luther will surface and nail a new 95 Thesis on the door of the RNC.

You Tube Video: Granny Sings “She Wants to Go Home”

You Tube Video: The Beverly Hillbillies Original Trailer

You Tube Video: The Beverley Hillbillies Theme Song

You Tube Video: Weird Al Yankovic, Money For Nothing

Risk: social class, party politics

November 8, 2008 Posted by | class, culture, McCain, Palin, politics, pop, republicans, TV | , , , , , , , , , , , , , | Leave a comment

We Are What We Value

I salute the courage and conviction of General Colin Powell and his endorsement of Barack Obama for President. I believe he spoke eloquently and truthfully about why he felt Mr. Obama is the better choice to lead our nation at this time. As much as we may agree with his choice of candidate it is not the general’s choice we commend. Of greater significance are the values and metrics General Powell used to arrive at his decision. This I believe is an important lesson Americans need to consider when they cast their vote.

General Powell noted the intellectual vigor of Mr. Obama, a desire to build bridges between people, his cool demeanor and unflappable countenance he exhibited throughout his campaign and during the height of the government response to the unfolding economic crisis. All these were key attributes and values General Powell considered in making his choice of a presidential candidate. General Powell also cited Obama’s positive campaign and his optimistic vision for the future of America. He noted Obama’s careful deliberation and wisdom in choosing a Vice Presidential running mate, fully qualified with the requisite experience and knowledge to step into the office of the presidency if the need arises.

It is our fondest hope that these are the type of values Americans will consider when they cast their ballot for president of the United States. We also trust that our fellow countrymen will not be influenced by the fear mongering robocall machines incessant incantation that Obama supports terrorists, is engaged in voter registration fraud and is a closet socialist. This offers our country nothing but more fear, suspicion, partisan divisiveness and a continuation of politics as usual. America deserves better.

This negativity is what has compelled the former Secretary of State for the first George W. Bush administration to say enough is enough we need a transformational figure to turn the page and bring America into a new era. Colin Powell’s endorsement is an example of a patriot driven by conscience to put the interest of his country above the interest of his Republican Party. Lets hope more American Firsters emulate General Powell’s example when they consider which candidate is best equipped to lead our country at this time.

General Powell needs to be thanked for his demonstration of an honest and careful deliberation of what values he looked for to make his choice for president. General Powell’s courage of his convictions and his life long service to our country is the stuff of real patriots. His values and his value to his country are great assets to our nation. Lets not squander his example or his wisdom.

Music Video: Fatboy Slim, Weapon of Choice

Risk: low information voters, partisanship,

October 20, 2008 Posted by | elections, Obama, politics, pop | , , , , | Leave a comment

An Evening with Ed Altman

Last night I had the distinct pleasure of attending Prmia’s History Making Series lecture that honored Edward Altman at the Deloitte and Touche Conference Center in NYC.

Mr. Altman, The Max l. Heine Professor of Finance at the Stern School of Business at NYU, was honored for his life long contribution to the study and development of credit risk analysis. His foremost contribution is the development of the Z Score which uses financial ratio benchmarks within an industry segment to determine corporate financial health. He has made many contributions to the study of credit risk, corporate finance and investment analysis of debt securities.

His presentation covered the development of credit risk analysis since his first published work concerning the Z Score in 1968. Mr. Altman was funny, intelligent and very engaging and he raised some dire concerns about the current credit market environment and what it may forebode. To be fair to Mr. Altman, he pretty much stuck with the subject of the development of the discipline of credit risk analysis and like Alan Greenspan went very light on market prognostications.

Some brief highlights of Mr. Altman’s presentation:

Stressed the importance of a healthy corporate credit culture and its neglect has contributed to the current crisis.

Bankruptcy workout and recovery rates will suffer due to current state of credit market.

Lenders need to combine quantitative and qualitative factors to determine loan default probabilities.

Risk managers need a better understanding of the correlation of debt ratings and corporate performance.

Mr. Altman also stated that corporate bond defaults could approach 11% next year and that other securitized asset classes are under severe pressure.

Mr. Altman also opined about the etymological origins of the phrase, “waiting for the other shoe to drop.”

Music Video: The Credit Crunch Song

Risk: credit market, research, economics, corporate finance

October 17, 2008 Posted by | credit crisis, economics, investments, pop, risk management | , , , , , , , , , | Leave a comment

Meet Joe the Plumber

The GOP has injected another populist caricature into the election campaign. Joe the Plumber joins Hockey Moms and Joe Six Pack as the holy trinity on whose rocks the Republican Party will make its stand.

Joe the Plumber from the swing state Ohio sounds like he could be from Jersey. Joe the Plumber said he wants to buy his bosses plumbing business. But Joe the Plumber doesn’t like Obama’s tax plan because he thinks it will force him to pay higher taxes on a $250,000 salary he hopes to earn someday. I don’t know of many plumbers that are making $250K a year. Many small business owners don’t have to take a salary or pay themselves a distribution from the profits of the business if it pushes them into a higher tax bracket. Joe the Plumber should see an accountant.

But that is not the point. Joe the Plumber wants to start a business and hire Joe Six Pack. Joe Six Pack needs a job so he can make car payments on the Chrysler minivan that his Hockey Mom wife drives to get the kids to practice.

Every four years The GOP seems to rediscover the common folk with a slew of populist rhetoric to run cover for their trickle down economics. The trickle down economics that have been practiced for the past 8 years have led to the abysmal economic mess we are now fighting to overcome.

McCain’s disingenuous socialist insinuation of wealth redistribution belies the fact that generous unfunded tax cuts, entitlement giveaways and unbridled corporate welfare have all been hallmarks of the recent GOP legacy. A kind of socialism for the rich.

This legacy has contributed to the broken down minivan in Ms. Hockey Mom’s driveway and the inability to afford the kids participation in the way too expensive hockey league. All this has left Joe Six Pack crying in his beer over his lost job and his resetting mortgage rate that he won’t be able to make payments on.

Obama’s tax plan will not discourage small business capital formation. On the contrary, Obama’s plan will reduce the tax burden on the middle class so they can hire Joe the Plumber to replace the old hot water heater and repair the leaky pipes under the kitchen sink. Duct tape just ain’t doing it anymore.

So with all the extra income in the hands of Joe Six Pack and Ms. Hockey Mom they will have the money to spend with Joe the Plumber and he will finally be able to buy that business from his boss.

Joe the Plumber should really be in the tank for Obama. Another GOP administration may forever flush away the possibility of Joe the Plumber’s dream of owning his own business.

Music Video: Plumbing Song, Weird Al Yankovich

Risk: small business taxation, capital formation, tax policy

October 16, 2008 Posted by | elections, McCain, Obama, Palin, politics, pop, republicans | , , , , , , , , , , , | Leave a comment

New York City Shakedown

NYC Sunset 1932

There are a number of sobering assessments surfacing concerning the economic crisis and its impact on regional economy of New York City and the Tristate area.

One estimate is that the reconfiguration of the banking industry will result in 100,000 high paying job losses in the Tristate area. That includes NYC, Northern New Jersey and Southwestern Connecticut. I originally thought that figure was a bit high but when you consider that a bloated Citibank can lob off 10 to 20 thousand jobs at the drop of a pink slip it might not seem too drastic a prognostication. I’m not sure if this figure includes ancillary businesses that are sustained by relationships with banks and their employees but whatever the composition of the number it will have a major impact on the regional economy of the Tristate area.

Job losses will remove significant buying power from the local economy. It will place added strain on the housing market, erode usage fees of buses, trains and road tolls and will curtail sales and property tax receipts. This will put enormous pressure on state and local governments and public school districts to deliver vital services like education, police, ambulance, road maintenance and other public services.

Another labor market statistic I learned was that the economic crisis will result in the loss of 30,000 construction jobs. This number according to some economists is an optimistic “soft landing” prediction for the industry. The construction industry is a major driver of jobs and economic activity in the Tristate area. As personal income, business revenue and tax receipts abate demand for new housing construction and renovations, commercial buildings and public works construction and infrastructure improvement and maintenance will decelerate.

The financial services industry shepherded America’s economic transformation to a services based economy. This transformation strengthened the banking industry by creating an economy that became increasingly dependent on the manufacturing of collateral such as housing construction and real estate development projects. This development allowed banks to finance more leverage in the credit markets and created the credit marketing frenzy of the last decade. America’s banking system exponentially expanded to accommodate the Titanic growth of the credit marketing industry. But like the Titanic after it hit the unforeseen sub-prime iceberg the industry has way too much capacity and needs to downsize as lending activity sinks into the black depths of recession.

New York City has long been considered the center of the worlds financial system. The downsizing of the banking industry is the equivalent of the shut down of steel mills in Pittsburgh and the closing of car manufacturing plants in Detroit. Citibank and Merrill Lynch are the General Motors and US Steel of NYC.

Music Video: Gene Kelly & Frank Sinatra, New York, New York

Risk: public services, banking, regional recession, cities

October 15, 2008 Posted by | cities, credit crisis, economics, pop, recession, taxation | , , , , , , , , , , | Leave a comment

Bankrupt Iceland Goes Fishing

The global economic crisis is serious business. Iceland the small North Atlantic island country of 400,000 is nearly broke. Like the rest of us sub-prime borrowers it seems Iceland over extended its credit line in a buying binge of UK and Russian equities.

To deal with the problem Iceland has nationalized its banks and has closed its equity market until some rationality returns. Though at present the fortunes of this volcanic isle are receding faster then its dwindling climate challenged glaciers it does have a recovery plan. Iceland’s leaders have called for the country to return to its roots as the hub of the North Atlantic fishing industry. Its always a wise move for any corporate entity to return to its center of competency when faced with adversity.

Lets hope that the fishing stocks swimming in the water and the ones listed on the exchange are sufficient to return the islands inhabitants to a well deserved prosperity.

Music Video: Billy Joel Downeaster Alexa

Risk: country default, geo risk, debtor nation

October 13, 2008 Posted by | bankruptsy, credit crisis, economics, pop | , , , , , | Leave a comment