Recession Diary part 8

During my recent visit to Hong Kong everyone seemed to have heard about what happened to Iceland. I was asked to explain what had happened. Explained how much I lost. That some of my money had simply disappeared and that my retirement fund was now worth a lot less than it had just 6 months earlier. How much this was going to affect us. The inflation rate, currency exchange and interest rates. That nobody had been arrested for any wrong doing. That not a single government official or surveillance employee had lost their job. That not a single person in any sort of position of authority had stepped forward to apologize for their mistakes. What surprised my friends in Hong Kong and others I spoke with, was that until then the protests had been very civilized. Some meetings with speeches. But very little else. No serious riots. No burning cars or broken windows. My friends wondered what caused this.

Given the situation as it stands right now. Where a huge number of people are faced with a couple of very uncomfortable facts. That the place where they live is actually decreasing in value, while the loans they are paying are rising fast. Just after returning I heard an example of this. Just over a year ago. A person had decided to invest in their own place to live. It cost at the time 30 million ISK. This person paid out 5 million in cash. Took a loan for 25 million in foreign currency. After all, everyone was told that it was crazy to take on loans in ISK. There might be some currency fluctuations, but low interests rates should more than make up for that. It was simply crazy to imagine that the currency would be allowed to fluctuate all that much. Right now the family home is valued at 27 million. But the loan is currently at 50 million. Now add to this the fact that somewhere close to 12.000 people (remember that's up from nearly none) are currently looking for work. That a huge number of people lost their work some 3 months ago and are just now waking up to the fact, that their next paycheck isn't going to cover their expenses and that it's unlikely that the situation is going to change any time soon. It shouldn't come as a surprise to anyone. Except maybe the people who are most isolated from all of this. That things are starting to get a lot more heated.

I'm not surprised. It was amazing to get a chance to spend a couple of weeks among friends. To forget for a moment the serious situation right here. To enjoy great food, excellent company and learn from people who've actually been faced with similar events and even worse. Things aren't just bad here in Iceland. They are bad all over. But I also realized how little responsibility the Icelandic elite has taken for what just happened. The total and utter collapse of the Icelandic financial system, the emergency laws and the steady stream of revelations about dubious deals. What's even more amazing is that it appears like it's more or less all the same people who are in control within the new financial institutions. On top of that the Icelandic government has ensured that I can't even open an account outside of the country. Right now there are such heavy restrictions in place on the movement of foreign currency that foreign investors aren't even allowed to invest in the Icelandic economy. So the people who brought us into this mess. Most of whom don't seem to be exactly suffering, seem to be surprised that people have just about had enough of the situation.

Yesterday thousands of Icelanders of all ages gathered together in front of the longest parliament in the world (established way back in 930). They blew whistles, banged pots and pans. Threw snowballs and did their very best to make the first meeting of the parliament after Christmas realize that something unique was happening. No formal political party had called upon people to make their voices heard. This was a pure form of grassroots activity. Facebook, SMS, blogs had been used to communicate this idea. The Icelandic police were completely taken by surprise. Unfortunately they lost control of the situation and were eventually forced to bring on the OC gas. This proved ineffective in breaking up the protests. Fires where lit and it wouldn't be until late at night that the protesters where driven away. Today we saw the crowds return. People are angry and parliament decided to postpone it's previously advertised meeting today. When the protesters discovered that in the church next door family and friends were grieving the loss of a loved one. They all left and didn't start up their protest until after the family had left. What a civilized bunch of protesters. They would head for the office of the prime minister and for the first time in decades the police had to escort the prime minister from his office. This hasn't been seen here since 1931 and back then we belonged to Denmark. This time around we can't blame the Danes for our problems.

The bleak fact of the matter is that we're faced with some amazingly bad economic news. People are losing their jobs. Prices are going up. There's a steady stream of news that seem to show that a small group of interconnected people have abused the public trust. There are cutbacks being announced in social services. Lots of people are being asked to accept a reduction in their paycheck at exactly the same time as expenses are going up. These are the kind of circumstances that call for drastic action. But the demands from the crowds seem to be simple enough. They are calling for elections. Our dearly beloved leaders seem to think that this might mean crisis. I wonder how they would define the current situation.

Thoughts on 2008

It's time to remember the year that's just passed. What a remarkable year it was for me. To live in interesting times wasn't exactly what I expected at the beginning of the year. But 2008 turned out to be a year of big news. Looking back it's been quite an eventful year for me. As in previous years I've felt blessed enough to have excellent friends and it turned out to be a year when I made new friends in far away places and renewed my ties with old friends through Facebook.

A memorable visit where we drove in amazing northern lights during the coldest weekend of the year seems to stand out in memory from the early part of 2008. However, early on in the year there appeared signs that changes might be in store. While I was reluctant to make changes, I was pushed in that direction and eventually made a leap to a new work place. Something that I now feel was a good move. I feel on a professional level more alive in my work than at any point over the last couple of years. I'm more active now with my professional friends and feel that I'm learning and experiencing more than I've done in quite some time. Experience is one my keywords for 2008. It was however, with mixed feelings that I left my friends at my former workplace. At the same time it showed me new opportunities and finally gave me the opportunity to travel to new destinations. To be pushed into such a search was stressful, yet I found quite a lot of strength in my own habits of yoga and enjoying visits to the gym with my friends. I even made a professional visit to London to consider new options and visit friends, some of whom have now moved closer to home.

For a long time I'd been thinking about traveling to Asia. Spending 6 weeks on the road in Asia and visiting Japan, Hong Kong, Singapore and Thailand before I started at my new workplace was an amazing experience. It brought me into contact with new environments and new friends. Experienced the rain forest in the rain. Had someone steal money from me while I slept. Discovered a lot of culture and tasted some excellent food. Made such a strong and positive impression on me that I went to Hong Kong at the end of the year for another visit. A start in London set the tone for the adventure. Change of plans turned out to be a good move. I saw amazing sites. Wrote a travel journal. It also ended in London with a visit to dear friends and some unexpected fun. At this point the financial situation already pointed towards changes. But the crash was unexpected. I've told people that I lost my kitchen. The money I meant to use to get a better kitchen vanished. I almost decided to cancel my travel plans to Hong Kong. What a mistake that would have been.

Following my first travels to Asia I spent an eventful summer. Didn't do as much hiking as I wanted. But spent a very cold weekend in Thorsmork. A weekend that brought me right back to Iceland and made me remember how cold my home country really feels. Still managed to do some amazing shorter hikes. Became active in the Icelandic part of the Couchsurfing community. Something that I had experienced in Asia. Hosted a variety of people from all over the world. Made new friends. Saw Iceland through the eyes of visitors. Visited new places and rediscovered old favorites. Enjoyed excellent music during Iceland Airwaves with some of those visitors. Music as always part of my life. Discovered lots of excellent music. Saw some excellent movies. My Asian movie collection has grown by an amazing amount.

The later half of the year passed quickly. I made my best effort to learn a bit of Cantonese. Some of which I managed to remember during my visit to Hong Kong at the end of the year. Discovered a host of interesting blogs and made a dedicated effort to create one of my own. A site dedicated to bringing together images from around the world. Something I hope to continue in 2009. Struggled with my fears and made some progress. The year ended with an amazing visit to Hong Kong, Macau, Shenzhen and Guangzhou. I would cheer for the end of 2008 and the arrival of 2009 while drinking champagne and watching fireworks in Hong Kong. 2008 was in many ways an amazing year for me. It made me a strong believer in the power of karma. I discovered a city that I still haven't grown tired of. I watched my friends make a commitment to share their lives together. Enjoyed the hospitality and generosity of my friends near and far. Looking back this might have been a year of bad financial news, but for me it was an amazing year of discovery and wonder.