Russia just bought Iceland

Financial Crisis: Iceland gets €4bn Russian loan as banks collapse


Iceland said it will borrow €4bn (£3.1bn) from the Russian Treasury, after announcing this morning that it would nationalise its second biggest bank, Landsbanki, and give a £400m loan to its largest lender, Kaupthing.

The decision to borrow a large sum of money from another country comes just hours after Prime Minister Geir Haarde told the country that borrowing billions of krona could "make the whole Icelandic society bankrupt".

The threat to Iceland's financial sovereignty is seen as the greatest faced by any country since the credit crisis started 14 months ago.

The Russian ambassador to Iceland, Victor Tatarintsev, informed central bank governor David Oddsson early this morning that Russia would provide Iceland with the loan for three to five years at rates 30 to 50 points above Libor.

However, Russia's deputy finance minister Dmitry Pankin said the country has not yet decided whether to make the loan.

Iceland's Financial Supervisory Authority announced on its website that the nation's second biggest bank, Landsbanki, was now in national hands, dismissing the board of directors and putting the company into receivership.

The country's largest bank, Kaupthing, will be given a £400m loan from the Icelandic Central Bank, which yesterday guaranteed all savings for Icelandic customers.

News of the bank nationalisations sent the Icelandic krona plummeting to a new 35pc low against the euro, but the currency recovered the loss after reports of Russia's loan.

Iceland's FSA has replaced the board with its own executives.

Around 150,000 people in the UK have savings with Landsbanki's Icesave and Kaupthing Edge, the UK retail arm of the Icelandic bank. Icesave said overnight that it had stopped processing requests to remove money and taking on new customers.

Commerce and banking minister Bjorgvin Sigurdsson told Icelandic national radio that the nationalisation was made in cooperation with Landsbanki and the bank would be open and run as normal while the changes were taking place.

"As declared by the government, all domestic deposits are fully guaranteed. Landsbanki's domestic branches, call centres, cash machines (ATMs) and internet operations will be open for business as usual," the FSA said in a statement.

Kaupthing said on its website that the government's £400m loan would "facilitate operations" at the bank and reassured customers that it was committed to the regular workings of the Icelandic financial system.

Iceland's parliament voted to adopt the sweeping new emergency powers to stabilise its struggling financial sector close to midnight last night.

Prime Minister Haarde indicated in a dramatic televised speech that he could not find an affordable loan from abroad that would not be disastrous for Iceland's public coffers. He also warned of "chaos" if Iceland's banks stopped operating, and rushed through the emergency measures.

Mr Haarde added: "A lot of the banks' business is in Britain, so it is likely that Britain might well be affected."

(ref: www.telegraph.co.uk)

P.S: WTF is happening???....Dammit! I was thinking-of buy Iceland myself. Time to really start shopping in my opinion. And no, I haven't got a cent, but massive credit is about to be unleashed...lol. Whats in Iceland anyways other than polar bears, killer whales and seals?

"Knighting" Shah Rukh Khan in Malaysia

The "knighting" of India's top Bollywood star Shah Rukh Khan will help boost tourism in Malaysia, an official from the western Malacca state government said Monday.

Khan is to be given the Governor of Malacca's award, which carries the title "Datuk," after his 2001 film boosted the profile of the state as a destination for tourists.

The 42-year old heart-throb will receive his award on November 29, in a ceremony that will be aired live on India's top entertainment channel, Zee TV.

"It is a boost for tourism in Malaysia. His movies are seen by people all over the world and this is cost-free advertisement for us," local parliamentarian Mohammad Sirat Abu told AFP.

Malacca, a historic port town and a relic of Malaysia's colonial past, relies hevily on tourism for income.

Mohammad said since the filming of Khan's 2001 movie, "One 2 Ka 4" at a popular resort in Malacca, the number of tourists coming from India has increased markedly.

"He is a worldwide icon and having him here will boost our country's tourism industry," he said.

However, the granting of the award has been controversial, with some questioning what Khan had done to merit the honour.

Opposition politician Lim Kit Siang said local artists and celebrities should have been recognised ahead of Khan.

"I don't think the reason that has been given for making Shah Rukh Khan a Malacca Datuk would impress or convince many," he said earlier this month.

However, former Malaysian prime minister Mahathir Mohamad supported the move.

"I feel embarrassed when the award... to Shah Rukh Khan is being questioned. We confer such titles quite often on foreigners to appreciate their contribution to the country," he wrote on his blog chedet.com.

"Some of these people have contributed even less than what Shah Rukh Khan has."

Malaysia has become a popular location for Indian films, which have a huge following among ethnic Indians and the majority Muslim-Malays.

Women of all ages -- including the wife of deputy prime minister Najib Razak, Rosmah Mansor -- are huge fans of the charismatic Khan, dubbed the "King of Bollywood" here.

Malaysian tourism chiefs are aiming to attract 22.5 million visitors this year, who they hope will spend 50.5 billion ringgit (14.1 billion dollars).

From January to September 2008, tourist arrivals increased 4.4 percent on the year to 16.3 million, mainly from neighbouring Singapore, Indonesia and Thailand.

Pakistan facing bankruptcy

Pakistan's foreign exchange reserves are so low that the country can only afford one month of imports and faces possible bankruptcy.

An investor monitors the index at Karachi Stock Exchange in Karachi, Pakistan. Photo: BLOOMBERG

Officially, the central bank holds $8.14 billion (£4.65 billion) of foreign currency, but if forward liabilities are included, the real reserves may be only $3 billion - enough to buy about 30 days of imports like oil and food.

Nine months ago, Pakistan had $16 bn in the coffers.

The government is engulfed by crises left behind by Pervez Musharraf, the military ruler who resigned the presidency in August. High oil prices have combined with endemic corruption and mismanagement to inflict huge damage on the economy.

Given the country's standing as a frontline state in the US-led "war on terrorism", the economic crisis has profound consequences. Pakistan already faces worsening security as the army clashes with militants in the lawless Tribal Areas on the north-west frontier with Afghanistan.

The economic crisis has already placed the future of the new government in doubt after the transition to a civilian rule. President Asif Ali Zardari has faced numerous but unproven allegations of corruption dating from the two governments led by his wife, Benazir Bhutto, who was assassinated last December.

The Wall Street Journal said that Pakistan's economic travails were "at least in part, a crisis of confidence in him".

While Mr Musharraf's prime minister, Shaukat Aziz, frequently likened Pakistan to a "Tiger economy", the former government left an economy on the brink of ruin without any durable base.

The Pakistan rupee has lost more than 21 per cent of its value so far this year and inflation now runs at 25 per cent. The rise in world prices has driven up Pakistan's food and oil bill by a third since 2007.

Efforts to defer payment for 100,000 barrels of oil supplied every day by Saudi Arabia have not yet yielded results, while the government has also failed to raise loans on favourable terms from "friendly countries".

Mr Zardari told the Wall Street Journal that Pakistan needed a bail out worth $100 billion from the international community.

"If I can't pay my own oil bill, how am I going to increase my police?" he asked. "The oil companies are asking me to pay $135 [per barrel] of oil and at the same time they want me to keep the world peaceful and Pakistan peaceful."

The ratings agency Standard and Poor's has given Pakistan's sovereign debt a grade of CCC +, which stands only a few notches above the default level.

The agency gave warning that Pakistan may be unable to cover about $3 billion in upcoming debt payments.

Mr Zardari is expected to ask the international community for a rescue package at a meeting in Abu Dhabi next month.

This gathering will determine whether the West is willing to bail out Pakistan.

Ref: Telegraph, UK

Do-Buy / The construction zone

As world's economy crumbles, Dubai keeps on building.
Dubai's property developers are still thinking bigger than everyone else - despite growing fears that the Middle East will not be immune to a global slump

The Burj Dubai, the world's tallest building, rises above the city

Sharif Shafei, PR supremo for a leading Dubai-based developer, can certainly talk the talk. Words like brand, vision, iconic and ambition trip easily off his tongue – all to convince you that it's business as usual in the world's hottest real estate market.

Shafei, an engaging Egyptian-Canadian, works for a company behind huge construction projects in neighbouring Saudi Arabia, Qatar and Morocco, all cashing in on an oil-driven boom and Dubai's reputation for cutting-edge architecture, boundless imagination and high returns.

"I am telling people to continue to invest in real estate," he insisted. "There is no bubble that's going to burst."

In a week that saw panicky stock markets, falling oil prices and credit growth outstripping deposits, the brashest economy in the Middle East barely paused for breath. And with annual growth of nearly 18% since 2001, it's easy to see why. Indeed, across the Gulf, the overall real estate market has been valued at a whopping $1.3tr (£750bn).

Property prices in Dubai have increased by 40% since January and by almost 80% in the last 18 months, though there is now some evidence of a slowdown. Worries about a downturn coincided with Dubai's annual property fair, Cityscape, which filled the cavernous World Trade Centre with eager salesmen, glittering displays of extraordinary buildings and promises of secure investments.

The real estate company Nakheel, owned by the Dubai government, and so in effect by the ruler, Sheikh Mohammed Bin Rashid al-Maktoum, turned heads by unveiling plans for the world tallest tower at a cost of $38bn. But the next day Meraas Development's Jumeirah Gardens complex came in at a show-stopping $95bn.

This is an emirate where record-busting skyscrapers and artificial islands are the norm, and which is already building the world's largest theme park and shopping mall and planning an Eiffel tower bigger than the real thing. So some people weren't that impressed.

"Dubai is fixated on the largest, it's a PR thing to attract attention, publicity and tourists," laughed Shafei. "Dubai," said Sina al-Kazim, chief executive of Meraas, "has always reinvented itself."

Smooth PR, lavish entertainment and celebrities like formula one champion Michael Schumacher added lustre. Michael Douglas and Catherine Zeta-Jones graced one party at the $1.5bn Atlantis Hotel on Palm Jumeirah island. Kelly Rowlands of Destiny's Child wowed guests at another flashy reception.

But if the public message was one of unbridled confidence, there was an undercurrent of concern that didn't feature in the sales pitches, press releases and shiny brochures.

Cityscape exhibitor Khaled al-Ali, resplendent in flowing white dishdasha and headdress among the dark suits, made no attempt to hide his fears. "It's a bit scary," he admitted. "Customer perception, misinformation and the size of the projects are all a bit too much. The wow factor makes it hard to make a decision. People believe in the companies and in Dubai but they want to know what's coming next. If banks are collapsing it might affect them."

Dubai is long used to defying normal behaviour: this tiny emirate, one of the seven states of the United Arab Emirates, has an economy second in size only to regional giant Saudi Arabia, even though it has relatively little oil.

Of its 1.3 million people, 80% are non-native foreigners, including 100,000 Britons. Many more are the south Asian labourers whose grim lives and working conditions were highlighted in the Guardian this week.

Its unique status as a regional hub for business, leisure, and travel means much investment is international rather than local – and that some will see it as a safe haven in stormy times elsewhere.

Warning signs about its property market have been visible for some time. There is concern about corruption allegations against property and banking executives. And worries too about speculative money propping up the market despite government efforts to slow rapid buying and selling, the so-called "flipping", of properties.

And late last month the UAE Central Bank made $13.6bn available to maintain liquidity in the face of a local credit squeeze.

"On the one hand you have the fact that Dubai's government will pour as much money as is needed into any element of the economy to see it safe," commented one property newsletter. "But on the other hand you have to be realistic about these things and ask, where will the people come from to live in these mega housing estates and to shop in these huge malls?"

Away from the futuristic towers, parts of Dubai provide glimpses of a world that is fading away: on the famous creek, lined with Iranian banks – a reminder of the brooding power across the Gulf - picturesque wooden abras nip between the dhows.

Across the greenish water on the Deira side, opposite the British embassy and the ruler's palace, the streets have a subcontinental feel that recalls the old adage about the UAE: "Emirates stands for English-Managed, Indian-Run, Arabs Taking Enormous Salaries."

In a place built on confidence and the projection of confidence the idea of failure seems inconceivable. The consensus is that a slowdown or a "correction" of property prices, and delays to some existing projects, are likely, but a crash impossible. "The message here is that it's still party time," says Professor Abdelkhaleq Abdullah, a political scientist. "Everyone else is in crisis - but Dubai always sees the opportunity."

Ref: The Guardian, UK

Zimbabwe - Where was that??

Zimbabwe's inflation rate surges to 231,000,000%

A new 100 billion Zimbabwean dollar note in a box of apples in Harare

A Z$100bn note - they were worth less than 8p when they were scrapped in August. Photograph: Philimon Bulawayo/Reuters

Zimbabwe's official inflation rate has surged to 231,000,000% as the opposition appealed to South Africa's former president, Thabo Mbeki, to rescue the historic power-sharing deal he brokered last month.

With the economy continuing its rapid collapse and no end in sight to the political deadlock, the World Food Programme today launched an appeal to feed 5 million Zimbabweans. It said that more than 80% of the country's population was living on less than £1 a day and nearly half is chronically malnourished.

The latest official inflation rate, for July, is twenty times higher than a month earlier. Independent economists, who have accurately estimated the true rate in the past, say that inflation this month will run into the trillions.

That has forced the government to allow shops this week to begin accepting US dollars and South African rand because the Zimbabwean dollar is now all but worthless.

The latest inflation figures will increase pressure on the country's president, Robert Mugabe to stop stalling over the composition of a new power-sharing government with the prime minister designate, Morgan Tsvangirai. The president is demanding security ministries such as the army and police as well as the finance portfolio even though foreign donors have made it clear that there will be no aid to revive the economy unless that falls under Tsvangirai's control.

Tsvangirai said today that the talks were deadlocked and called for Mbeki to intervene. "We have asked him to come over and he has said he will come over," he said.

But Tsvangirai said he retained confidence in the agreement. "We are confident about the potential of the deal," he said. "In the process of implementation, we have hit an impasse but not on fundamental contents of the deal.

"Unfortunately no progress has been made ... to bring the Zimbabwean people to the beginning of the path of recovery. Instead the economic crisis has worsened. We now live in an environment characterised by hunger, starvation, and we are days away from seeing people dropping dead on the streets."

Mugabe only signed what he called a "humiliating" agreement surrendering many of his powers because his government has no solution to the problems afflicting Zimbabwe, and that has not changed.

Its attempt to curb inflation with enforced price reductions only drove trade on to the black market.

The central bank removed 10 zeros from the national currency in August after rapid devaluation forced it to print Z$100bn notes that were worth only about 8p on the street when they were scrapped.

But the new currency continued the free fall as it dropped from about Z$100 to the pound two months ago to Z$2m to the pound before the government blocked electronic bank transfers last week.

Severe cash shortages, because the government cannot afford to print bank notes to keep pace with inflation, had meant that many people could at least use bank accounts as a means of payment using a parallel market rate. But that lifeline has now been cut.

The central bank said the transfers were used for illicit exchange deals and to overprice goods. "We have no option but to take this drastic measure in order to maintain sanity in the financial system," said the central bank governor, Gideon Gono.

Ref: The Guardian, UK

Disappearing Deccani culture...A concern !!!

Urbanisation of Hyderabad has taken its toll on a lifestyle that once bound diverse communities.


This anecdote narrated by well-known Urdu writer and academic, Zeenat Sajida, mirrors the traditional composite culture of erstwhile Hyderabad.

Has this refined Deccani culture as typified by the Hyderabadi way of living, become passé in the wake of globalisation and urbanisation, coupled with the expediency of electoral politics? Some of the prominent Muslim intellectuals of the city feel so.

Rather wistfully and with nostalgia , they recalled that the fundamental feature, which distinguished the Deccani culture, was its composite nature - a milieu in which the rulers and the subjects alike, while retaining their identity, respected the faith and beliefs of others. And their catholic outlook did not end by merely respecting the others' faith; they also participated with genuine warmth and affection in the festivities and other events.

"It was not culture predicated on mere tolerance. It was the culture of recognition of the right of others. It was secular in the true sense of the word. There was no difference between a Hyderabadi Muslim, Hindu, Sikh or anybody," observed eminent Urdu poet, Rashid Azur. Bonhomie, etiquette, manners, social graces, humility and simplicity were some of the attributes, which constituted the `zeitgeist' or the spirit of the times. The frenetic pace of urbanisation has transformed the cultural landscape of the city so completely that these values are rapidly becoming extinct.

Reflecting on the egalitarian attitude with which they were brought up, Rashid said, "We used to play with our servants. Chirkhi billa, goliyaan, lone paat, gilli danda, kabbadi were some of the games fondly played by all. The respect for elders was equally pervading and we always used to address our driver as `Khan Saab'. Another aspect of the Deccani way of living, which was missing now was that the family of servants used to live for generations in the house of their masters. They used to be part of the household ," he reminisced.

"I think the Khuloos (affection) and friendship of those times is missing now," rued Zeenat Sajida. Such was the extent of cross-cultural interaction and togetherness that it influenced even the cuisine. Yet another feature was that a majority of Muslims avoided eating beef. "The culture was almost similar in the houses of Rajputs, Kayasths and Muslims," she added. Every house had an open courtyard and a "Dalaan" (an open living room), and the size of Dalaan more or less reflected the social status of the householder, she added.

For Prof. S. Sirajuddin, a retired professor of English from Osmania University, those were the times of bonhomie, gracious living, love of poetry and good food. "Poetry circulated in houses and aired in mushairas. It went deep into the psyche of Urdu speaking people," he recalled.
Hyderabad had high quality mushairas which have become a thing of past. Outside Delhi and Lucknow in the North, Hyderabad was the most important centre of Urdu. Mushaira was a major cultural and social event in which the nobility and the commoners constituted a very appreciative and discerning audience. The city attracted poets like Daagh Dehelvi, Josh Malihabadi, Fani Badayuni and Fasahat Jung Jaleel among others.

Another retired English Professor, Taqi Ali Mirza, said that the preservation of temples, mosques and monuments like Ajanta and Ellora received lot of attention from the rulers, who used to give generous grants.

"Very munificent grants were given by the Nizam to non-Muslim universities like the Benares Hindu University and the Bandarkar Research Institute, Pune." In matters of dress too, there was lot of commonality between Hindu and Muslim students on the Osmania University campus. The Hindus used to wear a cap, which was compulsory and a sherwani or a coat. There was no restriction on wearing dhotis. "I miss that amity and fellow feeling now. There is feeling of alienation among the communities due to political reasons...this is very sad," he lamented.
Former Director of Salar Jung Museum, M. L. Nigam said the Hyderabadi tehzeeb was a gracious way of living, which had nothing to do with religion. "When we talk of Hyderabadi culture, it does not mean it is the culture of Muslims or Hindus. The whole problem today is that we are confusing culture with religion."

Citing another famous incident which reflected the secular culture, he said the sixth Nizam, Mahbub Ali Khan worshipped River Musi and offered a sari after it flooded half the city in 1908. "The greatest merit of that culture was that it integrated the people, irrespective of their caste and creed."

"Life was essentially easy-paced and stress-free," observed Ghani Nayeem, Urdu scholar, who said that nothing reflected this better than the present-day marriages, which have none of the refinement, grace and elegance of old Hyderabadi marriages. Old world ceremonies like "chakki ka rasm" in which seven suhagans (married women) ground turmeric in a grinding stone have already become extinct. How many young people today know of a Mushata (match-maker) or a Mirasan, who used to sing wedding songs, he queried.

A revival of that great culture and tradition might be the answer to Hyderabad's eternal peace and harmony

Its 2008, there'z no Google. What now??

Unearthly visions of a world without Google



Google is 10 years' old now but what if Larry Page and Sergey Brin had spent their university years pickling their livers instead of programming? We imagine a world without Google...

1 We'd still have brains
Why bother remembering things when you can just Google them? According to Nicholas Carr Google's instant access to everything may be reprogramming our brains and ruining our attention spans. Which reminds us of that thing, you know, that thing that bloke said about, er, things. No, sorry. It's gone.

2 We'd have fewer funny images
Without Google Image Search, the wags at Worth1000.com, Fark.com, b3ta.com and Icanhazcheezburger would have a much poorer selection of amusing images for their photographic tomfoolery - and the web would be a sadder place as a result.

3 We'd have rubbish webmail
Pre-Gmail, webmail had tiny amounts of storage space and terrible search tools. Gmail raised the bar, and every single webmail provider had to improve their offerings accordingly. Pre-Gmail, you'd get a few megabytes of storage and you'd be grateful. Now, you get gigabytes free with your Corn Flakes.

4 We'd pay for content
If a site charges for access, we'll just Google for one that offers similar stuff for free. More often than not, that means a site funded by advertising - and more often than not, that advertising comes via Google. Wags suggest that when Google says it wants to organise all the world's information, it means it wants to organise all the world's money.

5 Beta would mean beta
It isn't the only offender, but Google's (ab)use of the beta label is particularly annoying. Pre-Google, "beta" meant a final check for bugs before the finished version shipped. Gmail has been in beta for approximately 3,000 years. Expect a similarly long beta period for Google's new browser, Google Chrome.

6 Pub quizzes would be fun
Google has been a boon for pub quizmasters, but it's taken the joy out of playing. Whenever the quizmaster asks a hard question you can see the electric glow as everybody sneakily Googles it on their phones.

7 We'd still use Usenet
When Google bought the Usenet archive Deja News, people still used Usenet - but Google then turned it into Groups, blurring the lines between Usenet and Google's own content and effectively killing Usenet in the process.

8 Bloggers would be broke
AdSense has made it possible for bloggers to earn money from their writing - in some cases, lots of money. Of course, that's also resulted in blogs whose content only exists to push advertising and "How to make money from blogging" blogs, but we don't read those ones so we don't care.

9 The iPlayer would suck
Without Google, the combination of bandwidth bills and legal action would have taken YouTube off the net ages ago. YouTube's success has clearly influenced iPlayer, and without it we'd probably be stuck with the DRMed, download-only iPlayer 1.0.

10 Mozilla wouldn't make money and IE would still be rubbish
Firefox's search box generates tens of millions of dollars for Mozilla every year - and it makes a tidy sum for Apple and Opera, too. By effectively subsidising alternative browsers and web technologies, Google's cash forces Microsoft to improve IE - and its new browser, Google Chrome, kicks the browser wars up another notch.

11 We'd be lost
Although rivals have overtaken it in some areas - Live Maps' bird's eye view is great - Google took online mapping and made it something we use every day. It's not just the about maps, though: it's the integration with local search results, the mobile versions and the API that gives developers the keys to make all kinds of mashups.

12 We'd still have privacy
Google's massive share of the search market and the sheer range of services it provides - including adverts on what seems to be most of the internet - means that it holds an unprecedented and potentially terrifying amount of data about individual internet users. If Google ever decides to become evil, we're doomed.