Tuesday, November 18, 2008

Nigeria the safest place to invest? (Dealscape): Remember Iceland in 2006 (NumericPoet)

There's an intriguing chart from the study that bloggers have seized on that ranks countries by risk based on a number of factors including current account financing gap, FX reserves/short-term external debt ratio, exports to-GDP ratio, private credit-to-GDP ratio, private credit growth, loans-to deposits ratio and banks capital-to-assets ratio. The chart is below:


For the full story, visit the link below:

Nigeria the safest place to invest? (Dealscape)

But also check out this instructive story from a few years ago - Iceland, the subject of the story now totters on the brink of bankrupcy....

The World's Safest Country... And Why Interest Rates There Are So High
by Dr. Steve Sjuggerud
February 2, 2006

Investing in the world’s safest country just got easier…

Usually, interest rates in safe countries are really low... In Switzerland, for example, bank deposits pay less than 1%. The same is true in Japan. In Sweden, interest rates are 1.5%. And in the Euro area, interest rates are about 2%.

But in Iceland, one of the safest countries in the world for doing business, the Central Bank currently has its overnight lending rate at 12%.

Things are surprisingly good in Iceland now. With the exception of Ireland, Iceland has the world’s fastest growing developed economy… and Iceland is offering investors a great chance to earn big returns on their cash… as I’ll explain.

You might be surprised to learn Icelanders enjoy the world’s longest life expectancy, and one of the world’s highest incomes per person. Crime is almost non-existent there. It’s probably because everyone has a job… unbelievably less than 3,000 people in the entire country were unemployed in the third quarter of 2005.

Get the full story on Iceland here:

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