Friday, June 19, 2009

Bring it down...

... is what an Icelander decided to do to "his" house after receiving the final eviction notice.
This happened on June 17th in the Reykjavík suburb of Álftanes. The former owner of this pile of rubbish had taken a 35 millions króna loan in foreign currency. With the devaluation of the Icelandic currency, this loan is now over 60 millions.

I can understand the frustration of the guy but was tearing down the house the best solution? The bank, which now owns the "left-overs", has lost an asset that may have been sold and the money used to repay some of the national debt.

Hopefully, the man will not go unpunished so that this behaviour is not replicated.

And while we are on the repayment of the national debt. The government has decided to increase the VAT from 7% to 24.5% on some food items. This items include biscuits, sodas, sweets, juices... The VAT on food was brought down from 14% to 7% on March 1st 2007.
The so-called "sugar-tax" will be in place as of September 1st... Tough year for cavities!

Weather outside: Sunny, 10°C

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