Times are tough all over

[Elspode]

Originally Posted by tw

That's not the reason for problems in Iceland. Apparently Iceland's three biggest banks invested heavily in American mortgaged backed securities - helping to fuel an America that was spending massively (like all Republican administrations do) and using the incoming investments to deny how large the deficit had ballooned.

In another post, described was how China (in trying to be a close American friend) was inadvertently making Americans ignore the costs of “Mission Accomplished”. China’s massive investments also contributed to the ponzi scheme of tax cuts and spending increases.

Eventually economics takes revenge – including revenge on those who invested in America NINJA style.

But again, why has the Australian dollar dropped so far and so fast (Brianna xxxxx Aliantha answered after this was asked)?

I see. So Icelandic banks invested heavily in our mortgage banking, but that isn't America's economy driving theirs in any way?

I gotta learn more about economics.