For Iceland

For Iceland, "Laandsbank" and banking and service industries; an epilogue [transcript dated before the financial crisis] is available in The TIMES [London] referencing the cross, good?, counsel between Iceland's Chancellor & Chancellor Darling of the UK. Wire transfer capacity, and self-help of British investors in Iceland's banking system and Irish sudden bank insurance and British accounts migratory & inevstors' preferred compensation options scathed operating capital [especially deposits] in Iceland as they flew to Britain. The panic reacted to a nationalization of Iceland's banks and a severe crimp in Iceland's burgeoning banking services sector.

A "how do you keep them down on the farm ... " mindset seems to have been lost on Reyjkavik which is now seeing a reverse immigrant flow, crisis related, which will be joined by those able to migrate for an economy.

If Iceland needs this form of banks restructuring boost and safety, then a post-office savings equivalent (or insured deposits to a US standard) via wire like the old Dutch Post-Bank may provide and suffice. In which, as this blogger envisions it, the scheme would be wire connected, Europe wide; and at least the accounts shifted in panic would be insured, and available for reserves re-lendng and safe. It could be a private institution.

British Post Office Savings bore less interest, were not directly insured, but guaranteed against loss by their permitted risk only in British Government Securities. An 'old gold' safeguard mentality; with modern 'money supply' versatility; that may work.

Iceland needs somehing beyond IcelandAir and a 'back to the sea & fishing' mentality; as in the sardonic and very wry Wall Street Journal piece a week or so ago.

SKOL!