We ought to remember.... Iceland’s banks weren’t the cause of the mess, our banks were. Iceland was simply one of the smaller dominoes that fell when our banking crisis started the mess rolling.
In the case of the good old USA, I’m not sure if our financial crisis is even over.
There is no way that any economy would survive the $60 trillion in made up paper of CDOs that our banks would be on the hook for. It still may very well bring down the entire house of cards.
It's not. This is just the beginning of Round 1.
I believe there are icelander banksters in prison right now. So their banks were indeed the cause of SOME of the mess.
“There is no way that any economy would survive the $60 trillion in made up paper of CDOs that our banks would be on the hook for. It still may very well bring down the entire house of cards.”
Yet $60T is less than 5 times GDP. In Iceland, the amounts owed were 11 times GDP, yet somehow their system DID survive and now appears to be doing far better than ours. I’m not a financial person, but in a bankruptcy, real wealth doesn’t disappear. All that happens is that the true assets of a corporation (or person) are brought back to reality. In a bankruptcy, I presume a bank would have had no trouble selling off genuine assets to another bank: those assets still would have had value. What they could not do is sell inflated assets. It would have to “eat” these losses meaning creditors would get paid back possibly pennies on the dollar for the worst loans. That seems a far fairer resolution of the problem than handing off the bad loans for taxpayers to absorb the losses.
“We ought to remember.... Iceland’s banks weren’t the cause of the mess, our banks were.”
Those are big global sharia backing, obama backing banks not our banks really we don’t own them. Hundreds of our own small conservative banks were wiped out they didn’t get the same deal as the big global banks did through Tarp.
Those banks did the same thing in Ireland they wouldn’t need a bail out at all if not for the banks bad debts. If we truly were Capitalists they would have been allowed to fail and should have been allowed to fail. Now they continue to suck off the taxpayer teat by offloading their bad loans unto taxpayers through the GSE’s.
They hurt a lot of investor’s too and Pension funds/401k’s invested in MBS’s and no one is bailing them out.
Banks accepted and bundled ‘deficient’ loans
Mortgages rejected by due-diligence firm were lumped in, crisis panel says