A Message From Steingrimur – You Will Pay For Jon Asgeir

November 3rd, 2009 → 9:29 am @ Dadi

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A Message From Steingrimur – You Will Pay For Jon Asgeir

“How to settle the debts of individual businesses is in the hands of the banks and they have to work according to regulations in those matters and not discriminate between people when estimating how the interests of the bank and therefore the Icelandic economy is best served, and how to minimize the damage. I will not get involved in individual matters, I neither want to or can. It would be wrong if the finance minister would get involved in individual cases. I cannot believe that is what people are asking.”
- Steingrimur J. Sigfusson when asked to comment on the proposed restructuring of Hagar, where Kaupthing supposedly is prepared to write off 50 billion ISK and let Jon Asgeir Johannessson resume 60% control in the company. Kaupthing has reputedly already written off billions in Jon Asgeir Johannesson’s other failed ventures.

Well Steingrimur, duh? There was an economic collapse here last year, remember?

was on the radio show Vikulokin at RUV the other day where one of the two other guests was Yngvi Örn Kristinsson, formerly chief economist of Landsbankinn. He had just finished work on the “government solution” and after the show he snapped at me for asking for a household debt relief plan. He told me how irresponsible I was because the government is re-building the banks on the back of the taxpayers so any more additions to that would mean more expenditure for the state, leading us into a situation where taxes would have to be 50% and pension payments cut.
I realised that a) we don’t know who was on that committee b) the Household Interest Group was not at the table c) Yngvi had mentioned that he had been in a situation where he had to negotiate with the new banks as if he had not been negotiating from a position of strength d) the people working on these plans are party-dogs like Yngvi who have been receiving huge salaries for the last couple of decades and cannot imagine the position of others e) are bankers who are used to assuming the position of the bank f) are good friends with the bank management g) and drive off after the meetings in their SUV’s.
I and the other two present countered with the unfairness of the price indexation, the flight from the ISK which lead to the currency mortgages and the alternatives of mass bankruptcies and exodus. Also the contradiction of the massive write-offs enjoyed by the riskiest businessmen and companies in Iceland.
Since that meeting with him I have felt the battle to make things better in Iceland is next to unwinnable. The people advising the government are the ones who created the mess. The only interest group that does not get representation are regular households and individuals. So their interests are not being watched.

I was on the radio show Vikulokin at RUV the other day where one of the two other guests was Yngvi Orn Kristinsson, formerly chief economist of Landsbankinn. He had just finished work on the “government solution” for the households and after the show he hissed at me for asking for a household debt relief plan. He told me how irresponsible I was because the government is re-building the banks on the back of the taxpayers. Any more additions to that would mean more expenditure for the state, leading us into a situation where taxes would have to be 50% and pension payments cut.

“Do you want to pay 50% taxes? Do you, do you?” was his mantra.

My arguments of the alternatives offered to people were bankruptcies and exodus did not merit an answer from the government’s chosen saviour of the households. Old style economics, old style economists.

I realised that a) we don’t really know who was on that committee b) the Household Interest Group was not at the table c) Yngvi had mentioned on the show that he had been in a situation where he had to negotiate with the new banks as if he had been the beggar d) the people working on these plans like Yngvi have been receiving huge salaries for the last couple of decades and cannot imagine the position of others e) are bankers who are used to assuming the position of the bank f) are good friends with the bank management g) and drive off after the meetings in their SUV’s.

Since that meeting with Yngvi I have had a resigned feeling of the situation in Iceland now being one where the have’s are cleaning up the valuables on the expense of the have nots. The people advising the government are the ones who created the mess. The only interest group that does not get representation with the government are regular households and individuals.

That is why we want Steingrimur to get involved. Unless what he really wants is to rebuild Jon Asgeir at our expense. I don’t know, the latest we’ve heard of Yngvi is that the Social Democrats are hard at work trying to find a lofty position for him in the system. It does not exactly build confidence in the whole process now does it?

Related posts:

  1. The Icelandic Banks Question of The Day
  2. Baugur boss Jon Asgeir Johannesson’s property deal under scrutiny
  3. Baugur boss Jón Ásgeir Jóhannesson holds office sale of the century
  4. No Collateral On Jon Asgeir’s $24 Million Apartment
  5. Who’s Demanding A Seat At The Table? Is It You?
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