Thursday, June 24, 2010
Icelandic banks gave out a whole lot of loans in Kronurs that were in fact a currency speculation. Apparently, the Icelandic Court has ruled that the balance due is based on the amount in Kronurs. Iceland voters in an initiative rejected paying back their bail out. I since found a detailed article that showed that this was a rejection of a deal at one point and since the referendum was put on the table, another better deal was offered to Iceland. Thus the no was a foregone conclusion since the voters would not accept a deal when they were already offered a better one.