Thursday evening update on the global financial collapse

Excerpted from the article:
“The Prime Minister of Iceland, Geir Haarde, sent shivers through the global financial system when he asserted that Iceland can not, and will not pay the foreign liabilities of its banking sector and that the interests of Iceland will have first priority.
 
Yesterday, Haarde told a press conference: “The point is this. The total indebtedness is such that there is no way that the Icelandic population can take responsibility for the debt these private companies have incurred. It happens everyday in bankruptcies, that some are burnt.”
 
British PM Gordon Brown calls Iceland’s behavior “totally unacceptable” and warned of legal action to recover the US $ 1.74 billion loss in Iceland, especially after the Icelandic government this week passed this week emergency legislation to deal with the banking collapse. Unlike the British or U.S. plans, this was not a bank “rescue” plan but legislation that gave the government the authority to seize any bank or financial company, put it through a bankruptcy or other procedure that would put the interests of the Icelandic nation over that of the banks.
 
Next door to us, Mexico’s peso lost 24% of its value against the US dollar, making its imports of wheat, corn, beans, milk, and rice 24% more expensive. The Peasant Association reported yesterday that remittances for the month of September fell 29.6%, causing panic in Mexico. Remittances from the U.S. are Mexico’s second highest earner of foreign exchange.” (end excerpt)
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