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Iceland blames male ego for financial meltdown

Posted Oct 14 2008, 04:01 PM by Anthony Mirhaydari
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Though there's plenty of blame to go around in this financial crisis, the folks in Reykjavik are pointing the finger squarely at the hot-shot men that ruined that country's financial system.

Excessive risk taking and reliance on foreign capital turned the financial system of a quaint economy of 304,000 people into what some are describing as a hedge fund with a seat at the United Nations. Iceland has a $20 billion economy, yet its three largest banks maintained debts of $61 billion.

Now, with both its currency and stock market crashing, the small Nordic nation is trying to clean up the testosterone-fueled follies by appointing two women to run New Landsbanki and New Glitnir, the nationalized banks created after the collapse of Landsbanki and Glitnir. According to one government minister, this is all too typical: "The men make the mess and the women come in to clean it up."

Since 2003, Elín Sigfúsdóttir was head of corporate banking at Landsbanki. Birna Einarsdóttir was promoted to head of domestic commercial banking at Glitnir last year. It's worth noting that besides these two, there was only one other women on the combined executive teams of Glitnir and Landsbanki. It's no wonder that psychologist Julia Noakes told the Financial Times that there wasn’t enough "femininity" in the business.

There is a scientific evidence to justify the move: Research cited by The Star suggests that women are much more cautious investors, better able to stick to trading rules and recognize the limits of their knowledge. Men, on the other hand, were much more confident and placed greater faith in their trading ability. In the end, studies found that all-female investment clubs outperformed all-male peers by 4.6%.

Related reading:

Is Alan Greenspan to blame?

It's a great time to be afraid

Will this be a depression?

Comments

 

yeah, that's it................

Amen!

Why is it that it is okay to say that women are different than men, but only when that difference makes the women look good?  When it is suggested  that women may be better investors, there is no problem.  But when Larry Summers, the former president of Harvard, merely suggested that women may not be as successful at math and science because they may be different than men, he was practically lynched!

Either women are different than men, and this is reflected in both positive AND negative attributes, or women and men are biologically equivalent.  Take your pick.

I believe that the plaque on my kitchen wall says it all:

Three Weise Women Would Have...

Asked directions

Arrived on time

Helped deliver the baby

Cleaned the stable

Made a casserole

Brought practical gifts and

There would be

Peace on Earth

Shall we take a look at the "persons" who brought the credit system to a standstill in our country?  I haven't seen anybody named "Susan" listed in the roll call of the "Brightest and Best" receiving enormous "Golden Parachutes".

Enjoy the ride folks, it is certainly going to be bumpy.

I totally agree with boston dude. Furthermore this is a poor choice in topic only to further perpetuate sexism and their remarks that follow. Boo. I say maybe the writer should rethink topic ideas before getting too involved in brainstorming specifics.

So all guys make bad investors?  Is that what I learn from this article?  If women were running the financial world, there would be no credit crises?  This conclusion is wrong.

Women rarely "boldly go" because thay have no testosterone, because they have no b@lls.  No explorers, no adventurers, nothing.  Men, however are expendable.

And of course there are differences between Men and Women. I'm sure you could not debate this topic. So Mr's the fact is, it's pretty much a mans world. History proves this. No world war was created by a woman. How many serial killers are famous women? It stands to reason that Men create most messes and it's delightful to see the recognition being given.

Fred, I know we can debate the fact that woman have NO testosterone. And that women are expendable, ask a few husbands.

And also lets us remember, that women created no;telephone,airplane,automobile,indoor plumbing,lightbulb,ship...ect,ect....

So, you see that we are different. Just think what we could do if we pooled our talents! Men would not have to die in B/S wars and women can got to the bathroom inside with the light on, where it's warm !!

Risky trading practices, not testosterone or estrogen levels, created Iceland's mess (and ours).  

The board has it pretty much right though.  Women are allowed to be better because of their sex, but don't you dare suggest that women are less able to do something because of their sex.  You can observe that blacks are better athletes, or that they are more endowed,  but don't make the observation that there are more fatherless black homes than in other racial groups.

It is the mindset of reverse stereotyping being different from stereotyping.  Someday we might get past all of the politically correct nonsense speak and be able to address the fallacy of everyone being equal, and not being equal not being a negative thing.  But for now, we are stuck with stupid commercials where the only acceptable and politically correct boob has become the white male, and they can be portrayed as bumbling idiots without free of any group representing specific ethnic or racial interests taking offense.

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