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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

 

Trying to blame all the bad credit problems on the woman purchasing items on a credit card is a man for you! (talking to you Marc)  Case in point, I may go to the mall and buy cloths or shoes I don't realy need but want, my husband on the other hand isn't a fashion plate but loves the big ticket items, big screen TV, the biggest badest computer, trucks and RV's.  My purchases may be more often but his make up for them in much bigger percentages.  Egos do get the best of most men!!

Uh Daniel?  What are you talking about?  Iceland isnt in a Mortgage Financial mess.  Nor do they have anything to do with Freddie Mac or Fannie Mae.  The Problem they have IS caused by Greed.  The want for more than you have and taking the risk to get it.  

Just like the pople who used the Equity in their homes to finance all their Cars, Boats,Motorcycles, go on a yearly Vacations while the people lending to them were raking in the money on Finance fees on houses of 130% loan to Value Ratios, interest only loans, Liar loans(no proof of income needed)you name it,  If they loaned it theymade money.  It didnt matter.  That is the Very defenition of greed my friend.  Read before you post next time.  That may help to keep you from looking like an idiot.

If it were up to women, there would be no market. Too much risk.

How many of these awful male investor's spouses said "no! I don't want any of that pile of money you made in the stock market! shame on you!"?

When the DOW was 14000...they were studs. Now they're impotent morons?

Yes, men are bigger risk takers....and women prefer it that way.

That's why there are lots of cowboy movies and few about chartered accountants.

Warren Buffett is the richest person in the U.S. not "Susan" Buffett

As usual another MISANDRIST article that blames men for everything and exonerates girls of any crime.  Girls are never held responsible, even if they rape little boys they only get house arrest.  The people responsible are those who gave out loans to those who could not afford to pay.  If the world was run by girls, it would be run by irrational, emotional unstable  and logically stunted little girls who behave like children because they cannot control their emotions.  A world run by girls would result in chaos because it would be based on emotions.  The feminist groups constantly contradict one another.

Uhhh Daniel.  What Turnip Truck did you fall off of?

This article is about Iceland.  Which last I checked, had nothing to do with Mortgage Meltdowns.  They had nothing to do with Fannie Mae or Freddie Mac.  The story is about their own corporate issues not Americas.

To address you fantasy about Greed, its totally about greed the mess the Market is in and will be in even further once Credit Card Debt catches up.  The Execs who came up with loans of 130% loan to Value Ratios on inflated and mis stated Home values to allow people to use their homes as ATMs.  Making money on every loan they made not caring who they gave it to.  ARM only Loans to people who shouldnt of even had loans they couldnt afford the homes they were in.  Lyar loans that needed no income verification at all.  Then they package these loans up and sell them as securities all over the world to any and all takers again padding their pockets.  That is the very defenition of greed my friend.

Pay attention to the Article and you too can look smart getting your facts straight before engaging your mouth.

Don't you think that it is time that Wall Street takes responsibility for their actions?  World governments are trying to shore up the financial systems and Wall Street hypes all news as bad so that they can line their pockets.  Enough is enough!

Debbi, your point sadly misses the mark.  The absurd scenario and argument that I posted was intended precisely to expose the sophomoric suggestions of the article.  Concluding men are more financially responsible for the mock reasons I stated are indeed ridiculous, and I thought it was obvious.  However, you took it seriously, and in your response, simply sprinkled some anecdotal evidence of buying big screens to suggest that men are egotistical.  In so doing, you revealed a line of reasoning equally foolish as the nonsensical material in the article, and the absurd scenario I posted earleir.

Not quite..America has a 5 billion dollar fingernail polishing industry...and who makes the bucks to pay for such nonsense...men...the new economic order will put women where they belong..back in the bed at home.

Everyone knows the hedge fund community was and is basically a Boys Club.  They didn't want women to mitigate their risk-taking (and it's the risk-taking that's most often listed as the reason for their obscene compensation).  They didn't want any woman pinning them down or curbing their 'enthusiasm' (excesses).  The criticism is a legitimate one.  If you have children you know that males require alot more regulation and education.  It's a fact.  Unfortunately, the ones who most need regulating are the ones who most resist it. That they were successful in doing so may have something to do with the fact that so few women have any real power and those who do feel (with some justification) that they must be honorary males, rather than women.  After all, who made the rules?

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