Morgunbladid claims in the editorial column Staksteinar that “most signals indicate that a lack of liquidity is currently affecting the markets.” It notes that FL-Group recently purchased a large stake in the investment bank Straumur-Burdarás by paying with its own freshly minted shares and a stake in KB-bank. A pension fund that put its stake in Straumur-Burdarás up for sale received no offers.
Morgunbladid also notes that there has been a considerable slow-down in the real-estate market.
The money that has “flooded” Iceland over the past three years or so has dissapeared, and Morgunbladid attributes that to the more conservative policies adopted by the Icelandic banks in the wake of critical attention in the international financial community earlier this year.
“The gold rush has abated,” writes Morgunbladid, and “life has become more normal.”
“It is good news that the flood of money has let up,” concludes Morgunbladid.