Hedge funds planned on a killing in Iceland. Iceland says, “Piss off!”


Tourists steaming in the Blue Lagoon

When Iceland’s banks failed in 2008 under $85 billion of debt, dozens of hedge funds flocked to the island betting they could make money buying up creditor claims. Five years later, they’re still waiting.

The firms, including Davidson Kempner Capital Management LLC and Taconic Capital Advisors LP, snapped up the claims on the lenders’ assets at prices far below face value. They were wagering, as they did when Lehman Brothers Holdings Inc. went bust, that they’d profit as markets recovered, bank assets were sold off and creditors repaid. Over the years, about 80 firms joined, including Paulson & Co., which had made more than $1 billion betting on Lehman claims…

What the investors, some of them managing more money than Iceland’s $14 billion economy, may not have factored in was the backlash in the country of 320,000 people against the speculative Wall Street culture that, in their view, helped cause the failures of Glitnir Bank hf, Kaupthing Bank hf and Landsbanki Islands hf. While Lehman has paid out more than $40 billion to claim holders in the past five years, the hedge funds have yet to get any distributions from the Icelandic banks’ estates. The government, elected in April on a platform that included providing mortgage debt relief to Icelanders, has proposed paying the funds only part of their claims and using the difference to finance its campaign promise…

Attacks on the country’s banks “give off an unpleasant odor of unscrupulous dealers who have decided to make a last stab at breaking down the Icelandic financial system,” Morgunbladid newspaper editor David Oddsson said at the central bank’s annual meeting. “They will not get away with it.”

Keep on rocking in the Free World. Especially when the center of that world apparently is Reykjavik.

Facebook and Microsoft funding rightwing lobbyists

Some of America’s largest technology and telecoms companies, including Facebook, Microsoft and AT&T, are backing a network of self-styled “free-market thinktanks” promoting a radical rightwing agenda in states across the nation, according to a new report by a lobbying watchdog.

The Center for Media and Democracy asserts that the State Policy Network (SPN), an umbrella group of 64 thinktanks based in each of the 50 states, is acting as a largely beneath-the-radar lobbying machine for major corporations and rightwing donors.

Its policies include cutting taxes, opposing climate change regulations, advocating reductions in labour protections and the minimum wage, privatising education, restricting voter rights and lobbying for the tobacco industry.

The network’s $83.2m annual warchest comes from major donors. These include the Koch brothers, the energy tycoons who are a mainstay of Tea Party groups and climate change sceptics; the tobacco company Philip Morris and its parent company Altria Group; the food giant Kraft; and the multinational drugs company GlaxoSmithKline.

More surprisingly, backers also include Facebook and Microsoft, as well as the telecoms giants AT&T, Time Warner Cable and Verizon…

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Scientists find “missing heat” – skeptics must find new excuse to sit around and do nothing

British and Canadian researchers say “missing heat” in the climate system casts doubt on suggestions global warming has slowed or stopped in the past decade.

Kevin Cowtan, a computational scientist at the University of York, and Robert Way, a cryosphere specialist at the University of Ottawa, say observational data on which climate records are based cover only 84 percent of the planet, with the polar regions and parts of Africa largely ignored.

They have reconstructed the “missing” global temperatures using a combination of observations from satellites and surface data from weather stations and ships on the peripheries of the unsampled regions, the University of York reported Wednesday.

One of their finding is that the arctic is warming at about eight times the pace of the rest of the planet, they said…

While previous studies, which have only covered about five-sixths of the globe, suggest global warming has slowed substantially since 1997, the addition of the “missing” data indicates the rate of warming since 1997 has been two and a half times greater than those studies yielded, the researchers said.

“There’s a perception that global warming has stopped but, in fact, our data suggests otherwise,” Cowtan said. “But the reality is that 16 years is too short a period to draw a reliable conclusion. We find only weak evidence of any change in the rate of global warming.”

That’s the essence of the difference between weather and climate that never seems to sink into the dim perceptions of even the paid skeptics and climate change-deniers. Short-term investigation combined with short-sighted attempts at matching ideology with facts leaves virtually all the full-time funded skeptics blathering about the weather down the block for the last couple of years – and ignoring anything on the level of climate trends.

Technology University error removes all students, staff

A German university apologized for any distress caused its 37,000 students when they all received emails saying they had been unenrolled.

Kim-Astrid Magister, spokeswoman for the Dresden University of Technology, said the school’s entire student body and all of its staff — 48,000 people — were mistakenly sent emails Sunday telling them they had been unenrolled from the university…

“Your logins will be locked in 12 days. This is happening because you have been unenrolled as a student, your contract is up or your guest logins are no longer valid. Please ensure you have saved any information that may be contained within these logins,” the email read.

Many students said they panicked on receiving the communication, but were comforted when fellow students told them they had also received it.

Magister said the email was the result of human error while working on a software program designed to organize staff and student data. She apologized for any confusion or distress caused by the mistake.

The spokeswoman said the software error had been corrected.

Same as it ever was: Garbage in is garbage out.