• 26 Oct 2009 at 3:30 PM

Crisis Takes Toll On Economic Indicator

By Greg Michaels

economic data.jpgThere are many ways to judge the severity of the recession. You can look at unemployment, GDP, corporate bankruptcies, consumer spending, housing prices, and probably a hundred more pieces of economic data. But perhaps there is no greater indicator that what happened over the past couple of years was a bit more than a minor hiccup than when part of a highly regarded economic data set is phased out of existence. It’s happening soon and measuring the strength of the recovery will be even more difficult now.


The Big Mac Index is losing one of its data points as McDonald’s is fleeing Iceland in the wake of the krona’s collapse.

McDonald’s in Iceland, which imports most of the ingredients it uses in its meals, will shut after costs doubled over the past year, (McDonald’s franchise holder) Lyst said in an e-mailed statement today. The franchise holder said it doesn’t expect the situation to change in the short term.

While the declaration of an end to the global recession will now be on shakier ground due to the Icelandic hamburger shutdown, one last data point was left behind for posterity.

"We would have to raise our prices by 20 percent to get the margin needed on our products," Magnus Ogmundsson, Lyst chief executive officer, said in a phone interview. "That would have sent a Big Mac to 780 kronur" ($6.36), compared with the 650 kronur it costs today, he said.

At $6.36 per Big Mac, Iceland can take at least a little comfort knowing that it’s going out on top.
McDonald’s Closes in Iceland After Krona Collapse [Bloomberg]

Comments (20)

  1. 1
    Posted by guest | October 26, 2009 at 3:38 PM

    Greg -
    Did you really write this?
    “But perhaps there is no greater indicator that what happened over the past couple of years was a bit more than a minor hiccup than when part of a highly regarded economic data set is phased out of existence.”
    Come on Bess. Enough already. The boy is illiterate .

  2. 2
    Posted by guest | October 26, 2009 at 3:38 PM

    That’s too bad. McDonald’s is actually an improvement to what normally constitutes Icelandic food.
    Greg, please change that boring ass picture with the following one of Bjork.
    http://hearingtest.files.wordpress.com/2007/04/bjork-leaf.jpg

  3. 3
    Posted by guest | October 26, 2009 at 3:55 PM

    Bess,
    please change Greg’s title from “Editor” to “Retard we let post because we feel bad for him”
    He obviously doesn’t edit anything he writes
    -MD

  4. 4
    Posted by guest | October 26, 2009 at 4:01 PM

    Greg -
    Your writing is taking it’s toll on all of us. You douche.
    Love,
    Mom

  5. 5
    Posted by guest | October 26, 2009 at 4:05 PM

    Greg – did you go to University of Texas?

  6. 6
    Posted by guest | October 26, 2009 at 4:06 PM

    Please make it stop.

  7. 7
    Posted by guest | October 26, 2009 at 4:09 PM

    If you won’t fire him, at least take his keyboard away.

  8. 8
    Posted by Fan o the Macke | October 26, 2009 at 4:15 PM

    Greg,
    I’m going to superglue noise canceling headphones to your skull and make you listen to Björk 27×7 for a month.
    -Fan o the Macke

  9. 9
    Posted by Fan o the Macke | October 26, 2009 at 4:17 PM

    Greg,
    I’m going to be nice and only subject you to her 24×7 for a month.
    -Fan o the Macke

  10. 10
    Posted by Fan o the Macke | October 26, 2009 at 4:18 PM

    Greg,
    I’m going to put a dash of “special sauce” on all your burgers whether you want it or not.
    -Fan o the Macke

  11. 11
    Posted by guest | October 26, 2009 at 4:18 PM

    Greg-
    I am going to dress you up for Charlie Chaplin for Halloween. Your mustache will be created from the clippings I find on the floor after shaving my manhole.
    -Jeff Macke

  12. 12
    Posted by Alphaholic_Anonymous | October 26, 2009 at 4:26 PM

    Greg,
    We’re very impressed with your background. Be it your time writing for famed Wall Street tabloid Dealbreaker or your exemplary marks at The University of Texas- Corpus Christi, we want to offer you a full-time position in our mailroom. Details regarding the offer are attached. We look forward to hearing back from you!
    Sincerely,
    Department of Remaining Human Resources
    Galleon Group

  13. 13
    Posted by guest | October 26, 2009 at 4:33 PM

    Greg – I am going to staple a Collie to your back and lock you in a room with Dennis Kneale.
    -Jeff Macke Wannabe

  14. 14
    Posted by guest | October 26, 2009 at 4:36 PM

    Greg -
    I am going to cover you in curry and lock you in a room with Raj.

  15. 15
    Posted by guest | October 26, 2009 at 4:45 PM

    I have a new theory–Greg doesn’t actually exist. He was created, probably by Bess but perhaps by others–a lightning rod in the absence of good content. Note that on “good days”–and “good stories”–he is nowhere to be found. His input is directly correlated to bad days and bad stories. Example, “Hey guys,not too much going on here. Tits Cabrera has strapped them down, no Sri Lankans locked up, and Jimmy Cayne hasn’t come forward with any new and creative uses for cold pills…seems like we need to throw a Greg story out there…”

  16. 16
    Posted by guest | October 26, 2009 at 4:47 PM

    @1- that’s actually a correct sentence, nothing wrong with it.
    @greg- you suck.

  17. 17
    Posted by guest | October 26, 2009 at 4:48 PM

    @15 nope

  18. 18
    Posted by guest | October 26, 2009 at 5:15 PM

    Anybody who pays $6.00 for a Big Mac has shit for brains.
    TGFD can get 3 McDoubles and 3 McChickens for $6.00 total.
    WTF is so good about a Big Mac anyway? F*ck Iceland.
    The Guy from Delaware

  19. 19
    Posted by guest | October 26, 2009 at 5:17 PM

    @ 15 So you’re saying Greg is Tyler Durden?

  20. 20
    Posted by guest | October 26, 2009 at 5:26 PM

    @19 zerohedge would be very offended by that remark.

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