Another "Northern Rock" exits Denmark

From the same part of the world as myself, I was very interested to see one of my recommended financial institutions exiting Denmark, scarcely a year after starting up the venture.

At the time, the offered probably the best savings interest rate in the country, and stirred up a lot of sleeping Danish banks into finally offering something half-decent for their own customers, since Denmark has never struck me as the most financially competitive banking nation.

Well, since then Northern Rock have had their own well-documented problems in the UK, which I covered on the Do it YourSelf ISA blog. Funny thing was, despite everyone racing to withdraw your savings, everyone's savings were protected up to £30k, and the way these banks lend to each other means hardly anyone can tell which are safe and which aren't.

Now the UK government has decided to streamline the Rock operations and I guess a Scandinavian branch was not part of the plan. Check out Eik Bank, the new owners of skandiaBank, an institution I also recommend, instead, as they are offering to match Northern Rock's deal.

Pound in freefall, but the dollar hides it

I must admit that I have been worried about the Pound for some time, what with the trade deficit, budget deficit and now the Northern Rock crisis.

Actually, the trade deficit bothers me least of the problems, as Britain has a large reputation for investing abroad. The others are not so good. especially the Northern Rock crisis, since the implication is the government have magically created the necessary backup reserves out of thin air (is there any other method?)

Now, I notice that in the past couple of months, the Pound has dropped about 6% against the Euro and Danish Krone. This has hardly got a mention, as all the media are going on about the weakening Dollar and the bargains available for those taking a shopping trip to the USA.

So please, Germany and Holland, don't give in to whingeing France and Italy about needing a weaker Euro, and the usual rubbish about generating exports. A devalued currency helps no-one long term.

If it carries on like this, the Euro could become the world's new reserve currency, especially for pricing oil, at least until China is ready to claim its spot.

Just a thought.

As for me, I'm off to browse the internet for some bargains from Britain...