If Hannes Holmsteinn Gissurarson and Milton Friedman were right and capital flows  like a river to wherever it is put to the best use possible, then someone must have built a dam somewhere on the way to float 1 billion ISK into the safe haven of the curious company Lamba ehf.

Lamba which is officially registered as a company in the business of breeding sheep and goats, apparently has no sheep or goats on their books. Instead it borrowed money to buy shares in Siminn, which was then turned into shares in Skipti which eventually turned into shares in Exista. And while Exista’s worth has plummeted, Lamba’s loans are still outstanding and are now somewhere around 1 billion ISK.

Lamba’s owner is Brynjolfur Bjarnason, the noted Independence Party approved CEO of Siminn. And now the question is whether the bank is going to write off his debt? Which is very likely.

This is what Iceland had become, a country where CEO’s bah bah’d all the way to the bank.

I’m the one feeling sheepish. When my partner and I closed off our ehf. company we made an honest commitment to pay the outstanding debts. And we paid our debts.

But like the newswoman on Channel 2 said yesterday, it does matter in Iceland whether you are “Jon” or “Jon ehf” if you want your debts written off.

I would like to add to that that it matters even more if you are “Political Party Jon” or “CEO Jon”. Then you are the king of the sheep.

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