Economic experts for hire

The ill fated report from 2006 written by Tryggvi Thor Herbertsson and Frederic Mishkin. Tryggvi was at that time the head of The Economic Institute at the University of Iceland. Mishkin is a Columbia University professor and the former mentor of Tryggvi.

The report was widely considered within the Icelandic financial- and political system to be a health certificate, because it said that the economical system was strong and there was hardly any reason to fear a total collapse of the banking sector in Iceland. The report was hailed by the banks, the government and other politicians abroad to show how beautiful and perfect the Icelandic economy really was. The report is called “Financial Stability in Iceland” and is generally called “The Mishkin Report” and it was commissioned by the Icelandic Chamber of Commerce as a response to criticism on the whole financial system in Iceland and Icelandic companies from the international media. Tryggvi and mishkin ready for battle

Mishkin got 135 thousand dollars just to put his name on the report, and his part in the report is exaggerated extensively. A new book about the economic collapse in Iceland claims that banker from Merril Lynch said it a private email to a Kaupthing bank that the report was full of spelling errors and not very convincing on the whole. The spelling and structure was so bad that it was obviously not done by a person who had English as their native language.

The Central Bank under the leadership of Davið Oddsson made a similar report, and according to Oddsson the reports are different but at the same time have the same ring to them, and the results are similar.

Mishkin is a well renowned expert who made it very clear in this case that his integrity and the integrity of Columbia University is seriously in doubt. The Wall Street Journal reported last year that Mishkin is selling his name to the highest bidder. He apparently made a similar report for the Swedish authorities and got paid for around 7 million ISK and another one for the Swedish Central Bank for 2 million ISK. But the Icelandic report was worth 15 million ISK. The Wall Street Journal mentions other reports as well.

Mishkin has no credibility left. Iceland is the big bang of economics and he completely missed the plot for money.

Tryggvi Þór Herbertsson was rewarded by being hired as the government financial advisor when everything crashed in the fall of 2008. He only lasted a few weeks before resigning. After that he ran for parliament for the Independence party and got elected (the party made sure he was high on the list) and now serves the nation as member of parliament.

Well done to both. Great service to the nation. More has been written on similar issues here.

Tryggvi and Mishking killing reindeer


About this entry