The people of Iceland are getting uppity about covering the debts of Landsbanki. Not unreasonably, they are asking why they each have to pick up a debt of 12,000 Euros to cover the losses suffered by British and Dutch investors who tried to take advantage of high interest rates offered by the failed bank. Let the buyer beware is a familiar maxim in business so why doesn't it apply here?
The trouble is, support for the entire Icelandic economy hinges on their meeting commitments. Should the Icelandic government buckle in the face of populist revolt, then Straumur and every other Icelandic company could hit still further problems. Maybe this will encourage Straumur to cash in on an offer whilst they can - if there is a prospect of further financial melt down then some money now rather than more money later may be the better option. However, cash generated by sales followed by offloading the club at the end of January might be the best bet as far as the Straumur directors are concerned.
Complicated business isn't it? Almost makes you hanker for the days when we were run by Brown. At least we knew which bastard to blame!
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