LIFTING RATES TO CREDIBLY RESTART THE CARRY TRADE and borrowing to
SUBSIDIZE DOMESTIC BORROWERS SHOULD PROVE, I think, much less
costly than trying to carry the existing banking debts.
Obviously there need in this scenario be a test determining bona fide
domestic status.
Iceland need only go down that road until credibility is restored and
reinforced.
Perhaps this route is worth traveling for a while before deferring to
recommendations
of Kaupthing Bank's research department.
