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Wednesday, December 18, 2013

Forex Brokers for US Traders

I would like to start my post by stating that I feel really sorry for every US citizen as well as resident who is forced to operate a forex trading account from inside the US. Those who are familiar with how the US has left no stone unturned to create the least competitive trading environment in the global financial system will nod in agreement, newbies who are clueless will scratch their foreheads and ignorant traders will rush to defend the borderline unconstitutional moves enforced by US regulators.

The CFTC, which some also refer to as the Nazis of the financial world, are basically clueless about forex trading and are angered over the lack of control they have over the largest and most liquid financial market in the world. In an attempt to flex a muscle which does not exist they have created trading rules which makes trading forex an unattractive option for US traders and US forex broker have to comply with them.

The set of rules has send waves of US traders to search for quality off-shore forex brokers who do accept US clients as there is a growing number of forex brokers who refuse to cater to US clients and let them drown in their own misery. Then there is a new brand of off-shore forex brokers who do accept US clients and their deposits in order to cheat them out of it. Before every US based traders gives up hope the third breed of off-shore forex brokers does not care about nationality and only cares about providing all traders with a professional trading environment.

It is very important for US based traders to locate an off-shore broker who accepts US clients and offers them the trading conditions they need in order to be on par with the global competition. While US regulators are as moronic as self-proclaimed professionals can be, US traders should not be forced to carry the brunt of regulatory stupidity.

Why should US forex traders evaluate their broker and decide to switch?

Every forex trader needs to answer this question for them as there is no right answer. This post is not meant to encourage every US based trader to flee the country, but rather to think about what is going on before accepting it.

Look at your trading portfolio and determine if you are satisfied with your performance trading inside the US. Should you like your strategy and trust it fully then you could potentially earn ten times as much by simply switching to a proper forex broker who accepts US clients and offers a competitive trading environment.
US regulators ensured that every US trader operates in the forex market at a disadvantage. There is a reason why every major US financial institution has moved their trading desk outside the US in order to compete and enjoy a truly professional trading environment.

Think about it!

Most serious and successful institutional traders do not want to run their portfolios from inside the US regulatory misery so what makes you think you should?

One forex broker who accepts US clients and maintains its integrity as a company is PaxForex. They do not care about where traders are from; they care about providing the same professional environment to all traders. Tight spreads and deep liquidity with fast execution which means you can actually get your orders filled at those tight spreads.

Friday, December 13, 2013

Did Glenn Stevens kill the Aussie?

Alright, before you guys scramble and scratch your head about the headline and what it means stick with me for a few more moments and let me explain. As a forex trader you should always be aware of developments like this as it will impact your forex trades. I am not suggesting to trade fundamental news reports as you all know I am a technical trader and get all my trading info from the charts as I trade price action.

Let's back up a few notches here. Did you notice the big sell-off in the Aussie yesterday? 

You have no idea what I mean when I say Aussie, great. The Aussie is a nickname for the Australian Dollar and not some beardy bartender in New South Wales. When you hear people talk about the Aussie or read about it and it has anything to do with financial content then it usually refers to the Australian currency.

Now back to my first question, those of you who trade must have noticed it. Those who trade and did not, check your charts again and you should see a heavy sell-off towards the end of the US trading session. Bears took this currency pair and slammed it through the floor. 

You may have wondered why this happened as prior to the heavy selling pressure, which resulted as institutional traders dumped the Aussie, the AUDUSD for example was trading it very good support levels. I myself went long at 0.9000, but had my hedges kick in at 0.8960. I closed them already earlier today for a good 50 pips in profits and entered additional longs at 0.8910. I managed to caught the bottom with precision this time, at least for now.

The reason why the Aussie was punished yesterday and earlier today prior to its reversal which was partially due to an expected short-covering rally was Glenn Stevens or rather the comments he made.

Who on earth is Glenn Stevens?

He is the Governor of the Reserve Bank of Australia.

What damaging thing did he say that caused the Aussie to be punished the way it did?

He stated that the RBA favors a lower Aussie over cutting interest rates and that the preferred exchange rate for the AUDUSD would be closer to $0.85 than it would be to $0.95. 

The issue here is that he more or less ruled out interest rates cuts which is bullish for the Aussie, but prefers to see a lower Aussie which is bearish to a degree. Keep in mind the RBA has little influence over the exchange rate other than cutting interest rates or printing money. Overall traders may be a bit confused and if the RBA does not engage into idiotic money printing like the US Federal Reserve or the Bank of Japan than overall the Australian Dollar is likely to strengthen regardless of what Stevens prefers.

Monday, December 9, 2013

How close is US Fed to Taper?

It has been a rather hectic month last month and we has a work overload which almost crushed everyone at the office. There are times of relative calm and there are times of extreme rush and pressure, but that is what we signed up for and before you get the impression that I am complaining I want to clarify that I am doing the exact opposite. 

Busy is good, the busier the better. So as you may have noticed we had two monthly non-farm payroll reports out of the US and are on the verge of a lack of leadership change at the US Federal Reserve. Basically one idiot out and a bigger idiot in. This has been the pattern over the past few decades and I am always humored and surprised that the next generation of Fed abuse is always worse than the previous one. 

NFP data pointed two two consecutive months of above 200K new jobs created, but the data is not as rosy as dumb money media outlets and analysts have you believe in order to keep the fake bull rally alive. The underlying data shows fundamental weakness in the reports and while some have run around like a chicken without a head screaming taper they simply mimic the crowd mentality without even fully understanding what they just said.

How close is the US Fed to Taper?

Not as close as the US Dollar bulls want them to be. The two reports released simply confirm that the economic picture was a bit more stable six months ago than expected, but during that time the doofus at the helm of the Fed did not realize that and maintained the current stimulus.

Wait a second, the doofus at the Fed not realizing an economic development until after the fact it happened? Does that remind you of something? 

Yes, Janet Yellen. She said the same thing about the financial crisis. Janet Yellen - The joke is on you!

So, what about the current economic climate?

Well, it may be much worse than expected or at least not as strong as begged. Combine that with the next era of monetary idiocy which will soon grasp the Fed and you are not even close to a significant taper by the Fed. 

Tuesday, December 3, 2013

December 2013 Hot Forex Trade

December 2013 Hot Forex Trade: AUDCHF

Forex Outlook: Bullish Bounce from Double Bottom 

Entry Level: 0.8200 - 0.8250

Take Profit: 0.8550 - 0.8600

Stop Sell: 0.8100 - 0.8150

Second Entry Level: 0.8000 - 0.8050

Monday, December 2, 2013

PaxForex Trading Recommendations December 2013

PaxForex Trading Recommendations are published every day over at PaxForex and I want to bring them right to you as well. Follow them if you want to get on board and earn over 1,000 pips every month. Feel free to give your feedback and share your success stories here.
Monday, December 2nd

Monday, November 25, 2013

Create a Successful Forex Trading Strategy

I came across a very nice infographic which covers the cornerstones of creating a successful forex strategy. I thought I share this with you guys and hope that new traders will find it beneficial as it not only helps you on your road to success as a forex trader, but can also speed up the process a bit.

Creating a successful forex trading strategy is one of the most import steps for any trader who wants to be successful. It may also be the most challenging task as it requires plenty of time and traders can't rush this process. This step has to be preceded by a proper education first in order to have a deep foundation on which you can build a strategy.

Check out this inforgraphic which can help you shorten the time as you learn how to create a proper trading strategy:

From: PaxForex

Now you are armed with the key aspects which go into creating a successful forex trading strategy. Take what you read in the above infographic and combine it with your previously amassed research and knowledge about forex trading and start to work on your very own trading strategy.

It is time to profit, don't you think?

Tuesday, November 19, 2013

Is your Stop Loss killing your profits?

Since we have a very slow economic news week so far with very little to move the markets either way I thought I will take a few moments in order to cover a topic which many new traders may find very beneficial. It appears that new traders are clueless about how to use a stop loss order properly and follow popular advice which causes them to stop their profits as well.

There is a growing number of new traders who determine a strategy where they are able to generate profits, but never realize them. They get their analysis right, make the right call and end up with loss after loss after loss. The side effects of this are severe and over a longer time period it leads to total loss of the trading account.

In case you belong to this group of new traders who analyzes a currency pair correct, but fails to profit from it then the problem may be located with your stop loss order. You are getting stopped out of a trade and after you closed it successfully for a loss price action turns around and you could have earned money from it.

Somewhere in the moronic forex marketing world the idea was circulated that real traders, regardless if you trade forex or other asset classes, use a stop loss order to protect their account and manage risk. This notion is complete non-sense. For starters only inexperienced and uneducated traders use a stop loss order so they can close a trade for a loss.

Real traders do use a stop loss order, but not to manage risk. A stop loss order is used to close trading positions for profits.

A lot of new traders then are so terrified of trading that they place a stop loss order 20 pips, 30 pips or 50 pips away from their entry and stick to their risk-reward ratio of 2:1. This basically means that if they place their stop loss 30 pips away they will place their take profit 60 pips away. At the end of the day they think they are trading properly.

Those who want to succeed as forex traders need to drop this moronic idea and understand that using a stop loss to close trades for losses is not intelligent risk management. Furthermore, placing a stop loss order very tight to your entry is getting close to gambling and has nothing to do with trading anymore.

Don’t let your fear combine with your stop loss order and kill your profits, learn how to trade properly!

Thursday, November 14, 2013

Janet Yellen – The Joke is on You

Every so often events in financial markets we get a few good jokes to laugh at and today is Janet Yellen’s Senate Banking Committee confirmation hearing. There are little doubts that she will be confirmed which would make her the first female Federal Reserve Chief. For starters, who cares if she is the first female or not! It really does not matter, but it does show the narrow minded thought pattern of the general public who will make a big deal out of it.

Do you guys remember when the first half-white socialist was allowed to run an administration?

Yes, he is still in office. The media frenzy was terrible and nobody cared about merits and qualifications. The moronic media outlets which support the democRATS claimed a victory on racism and ignored that they only fueled racism with their pathetic coverage and currently the US has not been more divided across every line you can possible draw since the pre-Civil War era.

Do you know when racism has been eliminated or at least redcued?

When nobody cares about the skin color of the person in the White House and people simply refer to the person as President. The same holds true about gender, religion and heritage inequalities. When dumb media outlets and their even dumber followers, readers and viewers stop pointing out those things we have truly taken a step in the right direction.

Now, let us get back to the soon to be new joke at the helm of the Federal Reserve. Janet Yellen may be excited and happy with a certain itch in the wrong place in order to get started, but I am wondering if anyone will point out to her that she was the second choice and the only reason it is her sitting in front of a few selected Senators is because the primary choice withdrew his nomination.

Picking Janet Yellen is nothing more than picking the best choice out of the terrible candidates who would even consider an appointment by Mr. Dumbama to head the Federal Reserve. The Septic Tank, Ben Bernanke, will leave a toxic mess behind which nobody wants to touch. Bernanke’s inability to create a connection between two function brain cells led to his ouster as he was essentially fired. Many have asked him to return back to teaching at Princeton where he can prep the next generation of failures and to leave big boy business to the big boys where he clearly does not belong.

I have had long discussions with my colleagues about the next butt monkey who will get a chance to display extreme stupidity when it comes to real world economic principles and Janet Yellen was the second best choice. It must really suck a very big magic wand to know that you were second choice and not sophisticated enough to understand that accepting the nomination will put you on the world stage where you will show how well the system has educated you towards total failure.

Yellen lacks any type of fiscal intelligence and equity markets cheer a dovish and incapable Fed Chief as long as stimulus will keep flowing and take away the ground they stand on. At some point you have to pay the piper and the bill won’t be bearable by the US economy.

Wednesday, November 13, 2013

Banks begging Hedge Funds

I wanted to share a rather interesting story of how government stupidity as displayed from the US to Japan and from Germany to Greece has changed the landscape of the financial system once again, but this time for the better. With a drain in liquidity banks had to search at alternative places for it and my colleagues and I discussed this topic during a conference this past weekend as I was asked if I was interested in getting on board as well.

What am I talking about?

A new little asset which is gaining popularity among niche hedge funds called Capital Relieve Trade or CRT. A CRT is referred to when banks hand off a portion of their risks associated to loans they made to a third-party in order to meet capital requirements.

Moronic governments and regulators have unleashed a serious of counter-productive rules designed to kill financial innovation and hurt competitiveness which has caused banks to scramble and choke off business units, stop lending and cut their overall business in order to meet the new set of rules and regulatory guidelines designed to crush profitability which is exactly what socialists who are allowed to govern desire.

Most banks decided to throw their hands up in the air and kill their business units, put their tail between their legs and get leashed by regulators. Then there are the few fighters out there who turned to the only sector of the financial system which never needed nor asked for a pathetic bailout; hedge funds. While CRT’s are not exactly popular with hedge funds, there has been an increase in assistance from this sector to the banking sector.

The reason why CRT’s are not very much liked not traded around global hedge funds is that often those banks who get down on both knees and beg for help, this is dumb money asking smart money for assistance, have already accepted some sort of government assistance and therefore have the morons from the regulators as well as government socialists breathing down their neck. Most smart money hedge fund managers stay away from this toxic mess as it only invites the government and its puppies to the sole untouched sector of the financial world.

I have no interest in trading CRT’s and could care less if banks go bust, but it is a rather interesting development and those banks who want to show regulators the middle finger are always on my radar as I appreciate their will to fight. 

Wednesday, November 6, 2013

PaxForex Trading Recommendations November 2013

PaxForex Trading Recommendations are published every day over at PaxForex and I want to bring them right to you as well. Follow them if you want to get on board and earn over 1,000 pips every month. Feel free to give your feedback and share your success stories here.
Monday, November 4th

Tuesday, November 5th

Wednesday, November 6th

Thursday, November 7th

NZDUSD Second Put

Monday, November 11th

EURUSD at Twin Support

Tuesday, November 12th

USDJPY at Resistance

Wednesday, November 13th

AUDNZD Final Call

Thursday, November 14th

GBPJPY Reversal

Monday, November 18th

AUDJPY Second Put

Tuesday, November 19th

NZDJPY at Resistance

Wednesday, November 20th

CHFJPY at Resistance

Thursday, November 21st

EURGBP at Support

Monday, November 25th

AUDCHF Last Call

Tuesday, November 26th

GBPUSD Second Put

Wednesday, November 27th

EURAUD Double Top

Friday, November 29th

USDJPY Second Put

Total Losses: 170 pips (First Monthly Loss)

Tuesday, November 5, 2013

Forex Price Action Overview

Instead of giving you guys a quick update on events which happened today I wanted to take the time to answer a question which is often asked by new forex traders. First of all I hope everyone has done the proper amount of basic research about forex trading. Those who have done so at least came across the term price action and those who are clueless don't even bother trading and get back to educating yourself.

The more research you will do the more you will read about price action and how many forex traders who claim to be profitable swear by trading price action only.Before you read any further, there is no one right approach to trading currency pairs or any other asset you trade; it all depends on the individual trader.

Here are some key facts you need to know about price action trading:
  • Price action traders only look at charts without any indicators. This is also known as naked trading as you only look at the charts and nothing more
  • Candlestick charts are the most common used chart for price action trading 
  • Trading signals are generated by chart formations as well as candlestick formations
Trading price action sounds very simple, it is very simple but it is not easy. It requires years of experience which you need to gain in a live account and not in a demo account. Those of you who still think you can accomplish anything in a demo account please read the following post and check out the infographic:

Tuesday, October 29, 2013

Blog Promotion - Earn $40 per Post!

I wanted to take a quick moment to let all you bloggers know about a very simple way to earn up to $40 per blog post. I think the promotion is rather simple and the requirements should easily be met by just about every serious blogger who is looking to earn some extra cash.

In order to take even more work out of your hands, you are given countless topics from which you can pick and choose which means the only task left for you is to work your magic as a blogger and write one blog post. Your blog has to be in good English and you need to write at least 1,500 words which means you really need to pick a topic which you can write about.

Here is the blog from where you can browse for a topic: PaxForex Blog.

There plenty of great topics covered and you can pick any one of those and write about. It should be a rather simple task for every blogger. On top of that you will get a chance to get your forex trading started with a funded account. 

You don't know how to trade?

No problem, just take advantage of PaxForex Trading Recommendations!

This means that your one post could end up making you an unlimited amount of money. It is not just the $40 which you could earn, but together with the PaxForex Trading Recommendations you could earn additional money every month.

You will get a funded forex account with up to $40 and leverage of 1:500 which means you will be able to trade a portfolio the size of $20,000. Just imagine if you will be able to make just 1% per month you could earn an additional $200 per month which means $2,400 per year with one great blog post. 

In case you have a more efficient way to earn for writing 1,500 words please leave a comment and let me know. I don't think it gets much better than this.

Get the details here: Forex Blog Post Promotion!

Don't wait any longer and start to earn some real money on a consistent base. It has never been easier to get started and funded. All you need to do in order to take the first step is write 1,500 words.

Wednesday, October 23, 2013

Forex Broker Reviews

Here is an overview of all forex brokers which have been reviewed so far by The Last Bear. Each review is conducted unbiased and no compensation is received by any forex broker. We write what some brokers may not want to read about their brokerage, but it does weed out the good from the bad. We had several forex brokers contact us and pointed out changes they have made which is why we conduct those reviews.

One broker in particular tried to spam our comments with different names and positive reviews and they have done the same after negative press across several forex forums. Interesting enough our best and worst reviewed forex broker so far both start with the letter P and end with forex; PaxForex has been our top choice with very tight spreads and deep liquidity while Profiforex has been the one who spammed across the web after negative reviews exploded about them.

Here is the complete list of all forex brokers which have been reviewed so far here at The Last Bear

Forex Broker
Minimum Deposit
Detailed Review
2 Claws Up
2 Claws Up 
2 Claws Up 
2 Claws Up 
2 Claws Up 
2 Claws Up 
2 Claws Up 
2 Claws Up
1 Claw Up/Down 
1 Claw Up/Down 
1 Claw Up/Down 
1 Claw Up/Down 
1 Claw Up/Down 
2 Claws Down
2 Claws Down 
2 Claws Down 
2 Claws Down
2 Claws Down 
2 Claws Down 
2 Claws Down 

We will continue to review forex brokers for your convenience and try to help fight scam brokers across the world. Please feel free to contribute your opinions and trading experiences.

Monday, October 21, 2013

US Debt out of Control

We discussed the US debt issue today during a round-table discussion and I think it is equally pathetic as humorous how the old brass of US politics runs around the world without shame claiming to be the world’s most powerful and prosperous country. I am not sure who is dumber; the old brass claiming that or the part of the general public who still believes it.

Look at the picture and see how the US debt has exploded under the current lack of leadership in the White House who decided to wipe his ass with the US constitution and laugh at everyone buying into the illusion. Please note that this only includes Dumbama’s first term which he defrauded US history with.

The second term may see two potential outcomes
  • US debt will eclipse $20 Trillion
  • US economy will collapse further
Either case is a bad outcome and trust by its foreign creditors almost wiped out. The US is on its way out to be the world’s reserve currency. It should have never became the reserve currency and as the US abandoned the gold standard forced its way on the rest of the world as it was at some point the most powerful country.

The chart shows that for over three decades the US was nowhere close to be powerful and prosperous and ran something equivalent to a Ponzi scheme with its creditors. Those who shake their heads in disbelieve right now picture the following scenario:
Your neighbor lives the most luxurious lifestyle in town. He borrows money from other neighbors every week and nothing he owns and spends is his own money. He borrows money from one neighbor and repays another one, the amounts borrowed increase with the trust as everyone was repaid so far, but his total debt continues to increase and so does his lifestyle.
Would you consider your neighbor smart, rich and powerful?

I hope you do get the point made here.

Look at the picture and ask yourself if your balance sheet would like that would you honestly applaud yourself and run around the world trying to force your approach onto others?

Think hard before you fall for the tremendous marketing machinery sponsored by the old brass who still holds on to an America which is long gone. There are plenty of ways to measure who is number one and the US only shows up as number one when it comes to total public debt.

Tuesday, October 15, 2013

Caution: Forex Demo Accounts

Having a small brake from trading is always a requirement in my opinion and no professional trader is glued to a dozen trading screens 24/5. We let the amateurs think that is how to trade while we know what it takes and how to get what we want. That holds true with just about every aspect of trading; us professionals do things the masses are terrified of which explains why the masses are always left holding the bag as we profit week in and week out.

One of the biggest and most compelling pieces of evidence are forex demo accounts. All newbies swear by it and who will read idiotic statements that it is a requirement as you learn how to trade. It is absolute non-sense. Professionals have never used a demo account and understood why it is nothing more than a newbie myth.

Check out this great infographic, courtesy of PaxForex

You are free to form your own opinion on this matter, just know that your popular point of view will get you where the rest as well as majority have ended up at; one or multiple blown accounts which led to frustration and total loss of capital which eventually forced an exit of trading altogether.

Do you want to do what is popular or do you want to learn how to profit?

Monday, October 14, 2013

Increase Trading Profits, Decrease Risk

As the US government shutdown as well as debt ceiling debate continues to play out without a resolution in sight, I am attending a small investor conference for one of our projects. I am being approached by a young associate who asked me a question which answer I think may benefit all new traders, regardless if you trade forex or any other asset class.

The young associate, an intelligent young woman in her mid-20’s, has started to trade in the forex market in her own and told me that is has worked out a strategy which she is comfortable with. She asked me the following question:

How can I increase my trading profits while I also decrease my risk exposure at the same time?

The answer to the question is rather simple, but she asked me if I could take an hour over lunch to explain to her how she could implement it. She offered to take me out. I usually don’t give lessons like that, but there is always an exception.

I will not go into detail how lunch went, but I will give a short overview of what we discussed as we lunched away. The food was fantastic, the ambient amazing and the company great. Overall it was an experience I would not mind to repeat at a different setting.

The answer to her question: Stagger your entries in a support or resistance zone.

What does this mean?

Most new traders place one single order as they enter a trade and as you may know out of experience you usually witness a move against your first entry. This strategy is for real traders who do not scalp; those who scalp will find this useless.

Let’s say you want to trade 0.50 lots and EURGBP is your currency pair you would like to take a short position in. Newbie traders who do not understand how to trade will place one single order of 0.50 lots and set their stop loss as well as take profit; often they are so terrified that they keep the stop loss so tight which means a normal price move will stop them out.

Here is how you should do it, which does not only increase your profits but at the same time reduces your risk exposure:
  • Identify the resistance zone; there is always a zone and not just one single number which mark support or resistance.
  • Let’s assume you identified a resistance zone which spreads 30 pips
  • Split up your orders in as many as you feel comfortable with, in this example we will use 3 orders
  • Enter your first order for 0.15 lots
  • Enter your second order for 0.15 lots
  • Enter your third order for 0.20 lots

As you see your total lot size remains at 0.50 and this should not be confused with a martingale strategy. Uninformed traders will tell you that the spread you will pay will eat away your profit which is not only moronic, but false.

For starters a spread of one or two pips should never eat your profits and you should not have a bigger spread. In case you do you may want to consider switching to a good forex broker who offers you very tight spread. As I am writing this short post the spread for EURGBP over at PaxForex is 1.2 pips.

Let’s assume you plan to exit this trade for a profit of 75 pips, the spread on staggered entries will not eat away your profits as you actually earn higher profits with this approach in comparison to one single order of 0.50 lots.

Thursday, October 10, 2013

Iceland Runs out of Cash

As the news are filled with the US government shutdown as well as the debt ceiling debate, I pointed out to one of my colleagues over lunch today that the US is not the only worthless country we are dealing with. We were joking around about the embarrassment the leaderless White House is forcing upon the US and how pathetic the pending short-term solution is.

One of my colleagues asked me which country I am talking about as the US is obviously front and center being the second biggest economy in the world and fast destabilizing. A little hint was all that was necessary before the somewhat forgotten problems out of Iceland have resurfaced.

It is a rather small and insignificant island nation and the impact on the forex market are almost non-existent from a direct approach. Their currency, the Kronur, is thinly traded and most don’t pay too much attention to it. Despite its tiny size, Iceland used to be the fifth wealthiest economy before it collapsed.

It is only small example of what the US is facing. Iceland grew wealthy thanks to its rapidly growing financial system which heavily relied on debt to finance its plans. At some point the banks serviced a balance sheet which was ten times the size of Iceland’s GDP.

The three main banks which defaulted in Iceland where: Kaupthing Bank, Glitnir Bank and Landsbanki Islands which back in 2008 defaulted on $85 billion worth of debt. The GDP of Iceland is around $14 billion which shows the immense size of the banking system Iceland nursed during its heydays.

The central bank in Iceland put capital control measures in place in order to protect a flight of capital out of Iceland which would have ripped the island nation into pieces. The move was unpopular but required in order to try to protect the country while allowing a gradual servicing of debt payments.

Prime Minister Gunnlaugsson wants foreign creditors to accept write-downs as soon as capital control measures are lifted which could be a hard sell, but he may make it a requirement before moving forward. Foreign creditors hold roughly $7.2 billion worth of debt which they can’t access due to the capital controls.

The reason why I pointed out that Iceland is back on page 14 is that a new report shows that the private sector is running out of cash to service its debt. It is estimated that non-government non-Kronur debt totals $5.8 billion through 2018, according to the central bank in Iceland. A shortfall in cash of 20% of GDP over the next five years is expected as cash surpluses are estimated to come in at less than 50% of the outstanding debt.