Iceland Meltdowns

From Maoxian - Trade in Salted Fish Products Remains Brisk, October 15, 2008 10:31 am :

Icelandic Stocks Drop 77% as Trading Resumes After 3-Day Halt


"The global financial crises sparked the collapse this month of Kaupthing Bank hf, Glitnir Bank hf and Landsbanki Islands hf with debts equivalent to as much as 12 times the size of Iceland’s economy. The three banks accounted for about 76 percent of the OMX Iceland 15 Index’s value prior to the nationalization. Trading in Icelandic stocks was halted since Oct. 9 after the OMX Iceland 15 lost 30 percent in nine days as the country’s financial system collapsed."

Setting the price of the nationalized banks at zero in the index, eh? Back to basics, which in Iceland’s case means salted fish products.

From The Financial Ninja - Iceland Melts, 77% Single Day Drop, October 14, 2008 10:00 am :

Although I don’t know for certain, I’m going to guess that a 77% single day drop for an entire index is the largest single day drop for an index ever anywhere…

Looks like Iceland just melted.

So if you thought 8% - 10% down days were bad, you ain't seen nothing yet.

Icelandic Stocks Drop 77% as Trading Resumes After 3-Day Halt: “Iceland's benchmark stock index plunged 77 percent, the biggest decline on record, as trading resumed after a three-day suspension and the nationalization of the country's largest banks.

Kaupthing Bank hf, Glitnir Bank hf and Landsbanki Islands hf collapsed this month with debts equivalent to as much as 12 times the size of Iceland's economy. The three banks accounted for about 76 percent of the ICEX 15 Index's value prior to the nationalization.

The OMX Iceland 15 Index fell 2,317.23, or 77 percent, to 687.39 as of 11:48 a.m. local time. Five of the 13 other stocks in the index didn't trade, while the five that did account for about 7.1 percent of the index's value.

Trading was halted since Oct. 9 after the measure lost 30 percent in nine days as the country's financial system collapsed. Iceland's delegation started talks in Moscow today to secure an emergency loan of as much as 4 billion euros ($5.47 billion) from Russia.

The country should seek aid from the IMF and later apply for European Union membership and adopt the euro, Foreign Minister Ingibjorg Solrun Gisladottir wrote in Morgunbladid on Oct. 13.

Related Posts :

1. The Stunning Collapse of Iceland
2. Economist Irving Fischer Talking Stocks From 1929
3. George Soros: Global Capital Meltdown

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