The backing system of our banking system was not strong enough to stand the 'winds of the hurricane' which is the global financial crisis, says the prior Prime Minister of Iceland, Reykjavik. Reykjavik was previously the Financial Minister in Iceland before becoming Prime Minister, a post from which he stood down after the crisis hit and the banking system went bankrupt in 2008.
The collapse of Lehman brothers in America affected the banking system worldwide and the systems to which Iceland are connected. The effects of the financial crisis in America that has swept around the world is a good example of how every country in our world is interlinked together. Although there were risks identified in Iceland's banking system that had been identified and were in the process of being addressed, Reykjavik thinks the Iceland banking system would have been able to survive if it had not been for the Global Banking Crisis. In Iceland alot of people lost their life savings and many people have committed suicide due to feelings of desperation.
Reykjavik says Gordan Brown and the U.K. authorities made inaccurate comments and by freezing Icelandic assets in the UK it affected the imports and exports of Iceland and had an extremely damaging effect on the Icelandic economy. Reykjavik says he has not spoken to Gordan Brown since, and when he was asked why not, he replied, 'maybe I should have'. Reykjavik has faced public outrage and has had eggs thrown at his house and has received personal threats. He is seen as an architect of a 'turbo-charged brand of capitalism'. However, Reykjavik says that against the odds the government managed to save the domestic banking system from complete collapse.
Meanwhile, effects of the global financial crisis can be seen in Spain for example, rows of houses that were in the process of being constructed however are standing half finished. In the U.S. alot of unofficial immigrant workers, a large number from Mexico that contribute to the economy are left without work and without access to the social support systems that permanent residents & citizens have access to. In America it seems it is possible to work and pay taxes without having permanent resident immigration status. Ten percent of the citizens and legal permanent resident population in America already relies on foodstamps to sustain their weekly food purchases.
It has also been warned that the global financial crisis is also putting women and children at risk of exploitation by illegal human trafficking rings due to the poverty in which they may find themselves. Meanwhile, some not-for-profit organisations are already suffering. In New Zealand, ASB Bank has cancelled it's first round of funding for the year, the second round not being until November. This puts organisations at risk, and one Auckland based organisation, Recreate, that provides services for disabled adults and children has just made its two staff redundant.
Sources: BBC WordNews broadcast, Witness broadcast 12.02.09, Aljazeera Inside story, broadcast, 'House of Cards' 11.02.09. See also 'A Financial House of Cards' by Mark LeVine, Aljazeera News website accessed 23/2/09 http://english.aljazeera.net/focus/outofwork/2009/02/200921712329491425.html.
The collapse of Lehman brothers in America affected the banking system worldwide and the systems to which Iceland are connected. The effects of the financial crisis in America that has swept around the world is a good example of how every country in our world is interlinked together. Although there were risks identified in Iceland's banking system that had been identified and were in the process of being addressed, Reykjavik thinks the Iceland banking system would have been able to survive if it had not been for the Global Banking Crisis. In Iceland alot of people lost their life savings and many people have committed suicide due to feelings of desperation.
Reykjavik says Gordan Brown and the U.K. authorities made inaccurate comments and by freezing Icelandic assets in the UK it affected the imports and exports of Iceland and had an extremely damaging effect on the Icelandic economy. Reykjavik says he has not spoken to Gordan Brown since, and when he was asked why not, he replied, 'maybe I should have'. Reykjavik has faced public outrage and has had eggs thrown at his house and has received personal threats. He is seen as an architect of a 'turbo-charged brand of capitalism'. However, Reykjavik says that against the odds the government managed to save the domestic banking system from complete collapse.
Meanwhile, effects of the global financial crisis can be seen in Spain for example, rows of houses that were in the process of being constructed however are standing half finished. In the U.S. alot of unofficial immigrant workers, a large number from Mexico that contribute to the economy are left without work and without access to the social support systems that permanent residents & citizens have access to. In America it seems it is possible to work and pay taxes without having permanent resident immigration status. Ten percent of the citizens and legal permanent resident population in America already relies on foodstamps to sustain their weekly food purchases.
It has also been warned that the global financial crisis is also putting women and children at risk of exploitation by illegal human trafficking rings due to the poverty in which they may find themselves. Meanwhile, some not-for-profit organisations are already suffering. In New Zealand, ASB Bank has cancelled it's first round of funding for the year, the second round not being until November. This puts organisations at risk, and one Auckland based organisation, Recreate, that provides services for disabled adults and children has just made its two staff redundant.Sources: BBC WordNews broadcast, Witness broadcast 12.02.09, Aljazeera Inside story, broadcast, 'House of Cards' 11.02.09. See also 'A Financial House of Cards' by Mark LeVine, Aljazeera News website accessed 23/2/09 http://english.aljazeera.net/focus/outofwork/2009/02/200921712329491425.html.
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