Iceland told the banks to drop dead, that’s what it did.
They government of Iceland didn’t socialize the bank losses and came out stronger for it.
This is what needs to be done here. Will it hurt? Hell yes it will. Will we get through it HELL YES we will. But there are a lot of people in banking, investing and in the watchdog agencies that need to go to jail and learn the pleasures of domestic bliss under the gentle tutelage of former crack dealing street thugs.
God bless them. They really got the shaft from us..horrible. I am thrilled that they are making the comeback. When are WE going to learn?
I remember reading at the time that the Icelandic government told their citizens they'd have to take a 25% hit on incomes for the next four-five years in order to save the banks (in as many words). Luckily they had to put it to the voters, who told them to Drop Dead. Much hand-wringing over the disaster that was sure to follow. It didn't, and they are on their way back.
Gonna be longer for the rest of us.
Iceland is the story the EU Socialists do not want anyone to hear.
Iceland´s turnaround since the collapse of the Icelandic banking sector in 2008, is buried in the news by the lamestream press everywhere so EU taxpayers don’t get any funny ideas about an alternative model how to deal with the odious debts pushed on the sovereigns.
The Icelandic banks made big bets on the fiat socialist Ponzi schemes and they lost, and now they have to pay. The people of Iceland won and the economy RECOVERS.
One plus for Iceland — UNLIKE IRELAND, THEY DON’T USE THE EURO. Their Krona is still the Sovereign Currency.
In October 2008, the effects of the 2007/08 global financial crisis brought about a collapse of the Icelandic banking sector. The value of the Icelandic króna plummeted, and on 7 October 2008 the Icelandic Central Bank attempted to peg it at 131 against the euro.
This peg was abandoned the next day. The króna later fell to 340 against the euro before trade in the currency was suspended (by comparison, the rate at the start of 2008 was about 90 krónur to the euro). After a period of tentative, very low-volume international trading in the króna, activity had been expected to pick up again throughout November 2008, albeit still with low liquidity, as Iceland secured an International Monetary Fund loan.