• 28 Oct 2008 at 8:27 AM

That Will Show Them!

Iceland’s central bank Tuesday pushed its key interest rate up to a record high of 18% from 12%, reversing a hefty rate cut earlier in the month.
[...]
Trade in the Icelandic krona is at a virtual standstill and is fixed by the central bank in a daily foreign currency auction. Monday, the rate was fixed at 152 kronur to the euro and 120.69 kronur to the dollar.

It is as if the unwinding of the carry trade that blew them up in the first place was the thin shadow of a distant memory. Apparently, the massive hike is the IMF’s bright idea.
Oh, what I wouldn’t give for a foreign exchange account, access to the kronur and a big hunk of liquidity right now.
Iceland Raises Key Rate Six Points [The Wall Street Journal]

Comments (17)

  1. Posted by guest | October 28, 2008 at 8:32 AM

    Buy Buy Buy! Rawr!

  2. Posted by VOL IS KING | October 28, 2008 at 8:34 AM

    did you actually read the article? their fx market is closed and the rate increase is a condition of the IMF loan.
    The central bank obviously isn’t reversing itself by choice.
    anyway, good luck with your imaginary trade, it should payoff well. those are always the most profitable.

  3. Posted by ep | October 28, 2008 at 8:44 AM

    “did you actually read the article? their fx market is closed and the rate increase is a condition of the IMF loan.”
    I believe I believe I specified “access to the kronur” as a feature of my wish. But perhaps you didn’t read my article.

  4. Posted by guest | October 28, 2008 at 8:49 AM

    N.A.S. Keflavik boi sez:
    Stay the hell away from the Kronur
    It’ll danza slap you with a viking boner
    Campbell Soup kid broads with chubby legs
    Lookin for men and a currency peg
    Smack that Nordics with exchange controls
    Boffin them blondies, and smokin bowls
    A brutha can live large and do lotta screwin
    Working hos named Inge in the Blue Lagoon
    Takk Fyrir for the goods time, bitch
    But now it’s time for me to make my switch
    N.A.S. Keflavik boi
    ICEDEFOR-Joint Reserve Unit
    “I’ll drink up all the brennivin ya got on ya shelf…”

  5. Posted by guest | October 28, 2008 at 8:53 AM

    “vol is king” sounds like a deprived little piece of work.

  6. Posted by guest | October 28, 2008 at 8:54 AM

    #5 You meant depraved? But deprived works as well.

  7. Posted by VOL IS KING | October 28, 2008 at 8:59 AM

    Yeah i’m just cranky.
    If you’re going wish unlimited access to monies why not just make it dollars and put in your bank account directly. That was my only point, the hypothetical becomes so strained as to render it meaningless.

  8. Posted by guest | October 28, 2008 at 9:03 AM

    N.A.S. Keflavik = ill flow

  9. Posted by SOFA KING | October 28, 2008 at 9:08 AM

    Dear Iceland,
    Lets get something straight. You know, and we know that your women are smoke shows for the most part. Do those of us that operate in more “reliable” currencies a favor and quit trying to prevent us from getting more Icelandic tai… err “bang for my buck.”
    THAAAAAAANKS!

  10. Posted by guest | October 28, 2008 at 9:14 AM

    DB Rumors>>>>>DB Trade ideas

  11. Posted by guest | October 28, 2008 at 9:22 AM

    “Oh, what I wouldn’t give for a foreign exchange account, access to the kronur and a big hunk of liquidity right now.”
    How exactly would you propose to profit from this? Carry trade in Iceland?

  12. Posted by guest | October 28, 2008 at 9:26 AM

    @ 8 —
    the only ill flow is from your withered prostate.
    Grab some vitamin E and yohimbe root, son

  13. Posted by guest | October 28, 2008 at 9:29 AM

    I heard there was some interesting news involving VW that your site might want to at least reference.

  14. Posted by guest | October 28, 2008 at 9:31 AM

    @13- oh, you mean like in opening bell?

  15. Posted by Tau | October 28, 2008 at 10:01 AM

    Psh, this is nothing. The IMF is only giving Iceland 2 sticks. Ukraine’s sucking on the pipe for 17 and Pakistan’s another 15 – that’s where the most awesomest parties are going to be

  16. Posted by guest | October 28, 2008 at 10:40 AM

    @15 — but it’s two sticks for ONLY 300,000 people!!!
    that’s 7,000 bux per
    the pakis are gettin 150 bux per
    They’re gona party like it’s 929 — Viking Saga style, son
    N.A.S. Kelfavik boi
    “save a coupla lamb-dogs and a few pints of Thule ale for me, Sigli…”

  17. Posted by guest | October 28, 2008 at 10:41 AM

    @15 — but it’s two sticks for ONLY 300,000 people!!!
    that’s 7,000 bux per
    the pakis are gettin 150 bux per
    They’re gonna party like it’s 929 — Viking Saga style, son
    N.A.S. Kelfavik boi
    “save a coupla lamb-dogs and a few pints of Thule ale for me, Sigli…”

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