I am wondering if it makes any sense to open an account in an Icelandic Bank as a safety to what could happen to the "World Banks". Is Iceland not going to become the Switzerland of tomorrow ? Any comments would be appreciated !

That is an interesting idea. I wonder what the currency translation impact might be through, and whether you'll like it.

One of the problems with foreign-currency accounts is that you're subject to risk that is point-source and not something you can realistically hedge off well.

Karl: Think of it as simply a store of value, like having some gold or silver around and it makes a lot more sense. Or it does to me anyway.

I feel a similar way about the CHF, but more short term... it's likely to spike really hard when the ECB loses it in a real public way.

I know that at one time you could hold money at Everbank (a US bank) in Icelandic krona (kroner? sp) - that was before the Episode, though LOL.

That doesn't do much to protect you from a failure of the US banking system (and according to bankrate.com Everbank is a bit rickety) but it would give you the currency option.

I'm not sure storing money in a country with <500,000 people whose economy is heavily centered around the financial system is such a wise idea. Not hard to see it blowing up again in the future.

Thanks guys. Very useful. I am going to send a few mails to the 4 or 5 banks and see if I can open a custodian account in ISK.

You know, einkabanki has surprisingly decent rates. Not "good" just something that looks normal.

http://www.landsbankinn.com/interest-rat....

How liquid would such an account be in a SHTF moment? Not well versed with accounts in foreign banks but, to Asimov's point, those rates seem 'normal' and much better than what you'd get in a US bank.

SHTF moments in the past have often been accompanied by account "freezes" during which one cannot access accounts at all, or, one is limited to withdrawing/transferring only small amounts per day.

This has even happened in the US (e.g., bank holidays, etc.), not just in foreign countries. I have no idea how to assess the likelihood of those type of restrictions being imposed again.

Peterm99 wrote..

SHTF moments in the past have often been accompanied by account "freezes" during which one cannot access accounts at all, or, one is limited to withdrawing/transferring only small amounts per day.

This has even happened in the US (e.g., bank holidays, etc.), not just in foreign countries. I have no idea how to assess the likelihood of those type of restrictions being imposed again.

The further this disaster is kicked down the road, and the longer we allow the worldwide banking system to hide their disastrous losses, the more likely such an outcome becomes.

At this point, my guess is that some serious disruptions in one's ability to access cash held in banks is a near certainty.

I agree completely with Truthseeker, it WILL almost inevitably happen when TSHTF.

My earlier post was intended to indicate uncertainty about "when" (i.e., when one should withdraw everything before they impose the restrictions), not "whether" it will happen at some point, but it was poorly expressed.

@Peterm99:

Yes, and perhaps 'SHTF' was too hyperbolic. I was thinking more along the lines of a situation like we had in 2007-8 where a SHTF moment has become a real possibility, but before we have runs on banks and Mad Max in the streets. How quickly can assets be moved from foreign banks was more the question. Just how sound are these Icelandic banks now that that country has seemingly dealt with its issues in a reasonably healthy way?