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Recently Played 2008: Beste Grüße & Good Luck.

December 31st, 2008 · Comments Off

The Big Picture: View of the Large hadron Collider's CMS (Compact Muon Solenoid) experiment Tracker Outer Barrel (TOB) in the cleaning room. The CMS is one of two general-purpose LHC experiments designed to explore the physics of the Terascale, the energy region where physicists believe they will find answers to the central questions at the heart of 21st-century particle physics. The Large Hadron Collider was scheduled to be up and running by the end of 2008, but electrical difficulties have set the date back to summer of 2009. (Maximilien Brice, © CERN)

Alle sombere berichten ten spijt, de wereld is ook in 2008 niet vergaan. Ditmaal naar verluid vanwege elektronische problemen. (BigPicture)

Gespeeld en genoten in 2008:
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Iceland’s bank defaults: lessons of a death foretold

October 10th, 2008 · Comments Off

A man takes money from a cash machine outside the Icelandic bank Kaupthing in Rejkjavik. Iceland's government nationalised the country's biggest bank, Kaupthing, financial authorities said, just days after the second and third biggest banks were brought under state control. (AFP/Olivier Morin)
Willem Buiter, Iceland’s bank defaults: lessons of a death foretold:

“Early in 2008, Anne Sibert and I were asked by the Icelandic bank Landsbanki (now in receivership) to write a paper on the causes of the financial problems faced by Iceland and its banks, and on the available policy options. We sent the paper to the bank towards the end of April 2008. On July 11, 2008, we presented a slightly updated version of the paper in Reykjavik in front of an audience of economists from the central bank, the ministry of finance the private sector the academic community. A link to that paper can be found here.

Because our Icelandic interlocutors considered the paper to be too market sensitive, we agreed not to put it in the public domain. Now that all three formerly internationally active Icelandic banks – Glitnir, Landsbanki and Kaupthing – have gone into receivership, there is no reason not to circulate the paper more widely, as some of its lessons have wider relevance.”

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