Iceland Recovering Fastest in Europe After Jailing Bankers Instead of Bailing them Out

Granted Iceland is a small country (the oldest Democracy in the world) with a fairly homogeneous poplulation but it's response to the Banking crises of 2008 is informative. This is a country that at the time was completely 'in' in the financial sector; the only fiancial company to come through whole was 'woman' run. Something to think about.

There recovery is nothing but amazing and they did the exact opposite of 'western economic wisdom' of bailing out the banks and heading into austerity.

After Iceland suffered a heavy hit in the 2008-2009 financial crisis, which famously resulted in convictions and jail terms for a number of top banking executives, the IMF now says the country has managed to achieve economic recovery—“without compromising its welfare model,” which includes universal healthcare and education.

In fact, Iceland is on track to become the first European country that suffered in the financial meltdown to “surpass its pre-crisis peak of economic output”—essentially proving to the U.S. that bailing out “too big to fail” banks wasn’t the way to go.

theantimedia.org...

Yeah - and they are fine knitters too.

a reply to: FyreByrd

After Iceland suffered a heavy hit in the 2008-2009 financial crisis, which famously resulted in convictions and jail terms for a number of top banking executives,

The problem with feeding the Banker crooks with Govt assisted bail outs is that they know no limits. To them it is tacit approval that taxpayers are there to be fleeced, first as clients then at the behest of their crony elected politicians througfh the taxation system.

We need to do an Iceland, be it the UK as a whole or as an independent Scotland. I read recently that the government is preparing to sell off the shares it has in the Royal Bank of Scotland, paid for by the tax payer, and they are expected to make a loss in the sale. Again, we really need to do an Iceland!

well if you get rid of this cancer your country will recover soon.
they just make you believe otherwise.

the bankers depend on us - not the other way round

a reply to: anticitizen

no you depend on the bankers, while you think you dont. Iceland has a pop. of 400.000

originally posted by: Temudjin
a reply to: anticitizen

no you depend on the bankers, while you think you dont. Iceland has a pop. of 400.000

How do we depend on the bankers? Where do they get the money? From our government who supposedly works for us. Where does the government get their money? From our taxes. Why are we borrowing money from people who borrowed money from our employees?

How does that makes sense?

a reply to: FyreByrd


Have never really been able to understand the mind set of

*rewarding* failure ... Doesn't happen anywhere else but in

banking.

a reply to: Cuervo

Ever wondered how a society over 10.000 people actually work, if you arent self sufficient as a society.You need the bankers, while Iceland is however self-sufficient they could lock down and they would survive. However the US, has trippled its size since the 1930, yet hasnt learnt that you are outliving your assets per person. You blaim the bankers or the state for everything, yet forget that your want is more than the needs.

originally posted by: Temudjin
a reply to: Cuervo

Ever wondered how a society over 10.000 people actually work, if you arent self sufficient as a society.You need the bankers, while Iceland is however self-sufficient they could lock down and they would survive. However the US, has trippled its size since the 1930, yet hasnt learnt that you are outliving your assets per person. You blaim the bankers or the state for everything, yet forget that your want is more than the needs.

Tell me what the bankers can do that our government can't.

a reply to: Cuervo

specialization? Your govern is their for another reason, called idealism.

originally posted by: Temudjin
a reply to: Cuervo

specialization? Your govern is their for another reason, called idealism.

The banks get their money from the government. They lend out tons more because they are only required to physically have a fraction of what they lend out. That means the bank is constantly in "debt" because they digitally create money out of thin air which all of us are held accountable for if they fail (because the buck ultimately stops at the taxpayer, literally).

So all banks truly serve as are middlemen. If we removed commercial banking, then all of our lending would be held accountable to voters. When was the last time a bank asked you to vote on a corporate policy? Shouldn't we have a say since we are left accountable when they screw up?

a reply to: Cuervo

Wouldnt work since you would only go in your self interest. The Government should never deal with money since its not their job, its like building a yenga house, the higher you come up the harder it gets and eventually it crashes. Lets do it the other way around, you are approx. 300 million people. 90% needs to go for your system to work practical all of you must work 8 hours a day, have 2.0 children, no comforts, eat 1600 calories per day, who do you pick? human faults and instincts created your society. The best people with money is the Jewish. Dont blame others for your own greed

a reply to: FyreByrd

This is why it is so dangerous for European Central bankers to let go of Greece and let them use their own money.

Because Greece would show other countries by flourishing in 6-7 years.

originally posted by: Temudjin
a reply to: Cuervo

Wouldnt work since you would only go in your self interest. The Government should never deal with money since its not their job, its like building a yenga house, the higher you come up the harder it gets and eventually it crashes. Lets do it the other way around, you are approx. 300 million people. 90% needs to go for your system to work practical all of you must work 8 hours a day, have 2.0 children, no comforts, eat 1600 calories per day, who do you pick? human faults and instincts created your society. The best people with money is the Jewish. Dont blame others for your own greed

Your reason for it not working is just assumption that it wouldn't work. I say it should be their job and you respond by saying they can't because "it's not their job".

If I want to paint the red barn green, a good argument against it wouldn't be "You can't paint it green because it's a red barn". That doesn't make sense. Of course it makes a crappy green barn right now because it's currently red. Which is why we paint it.

Think about it this way. If we had never heard of the concept of privatized banking and our government gave business loans directly to businesses instead of funneling it through the banks, would any legitimate economists think of the idea of privatized banking? How would they sell the idea of creating this third-party middleman that wouldn't be held accountable to voters but the voters would be held accountable to it?

If you removed it from familiarity, the idea of federally-backed privatized banking seems totally contradictory.

a reply to: Cuervo

I want a barn, do i need a barn? No? Then why do you want one, cause my neighbour has one. How do you jusitfy on building a barn which doesnt have a purpose, you lend it and say, if i build a barn and it isnt necessary i can sell it as a luxoury. Its called instincts. How do you think the Roman Empire was built and fell, cause of the bankers?
No you and just you.

a reply to: FyreByrd

The only country in the Wet with the balls to honour its own convictions.

All the bankers needed to go to jail. We jail ordinary people for petty nonsense yet these fraudsters who affect everyone's lives get to go free. Well past time to deal with them and I'd like to know why our government hasn't made the banks legislated in order to curb bankers powers. You simply tell them to face up to their mistakes/frauds as everyone does.

What the world is doing financially has not produced a secure and effective monetary situate - except the inevitable wait for the next crash - the whole model is wrong for today's world and needs to be changed. Looking at the USA"s debt along with other countries should be telling the world, this model has to be replaced.

Its not only bankers that need to go to jail its the politicians who support their interests also. They are equally guilty.

Another superficial analysis of the Icelandic crash and recovery. No mention of the austerity measures and tax rises that countries like the UK would not have touched, nor the government debt incurred to stabilise the economy. No mention of the foreign debts written off by other countries, such as the UK, which removed at a stroke a rather large millstone around any recovery.

The Icelandic banks were allowed to fail because they catered for foreign investors. Iceland could just afford to underwrite the domestic investors. Attempting to make a point by comparing Icelandic recovery to everyone else is rather silly. Apples and oranges, and all that.

I am not saying what the Icelandic authorities have done has not been impressive, but it's not appropriate to compare Iceland with the US, or any country for that matter.

I've been advocating for Iceland's approach to the 2008 financial crisis since the whole mess started.

For a socialist country, they seem to understand that in capitalism, you don't reward failure by stealing money from the people to pay for it.

If only we had actual capitalism in the US...

a reply to: paraphi

Iceland was threatened by the UK with having all its assets frozen using anti terrorism laws because they went this route.

At the end of the day UK had no choice but to write off those debts as it was largely debt incurred by British companies and the EU was trying to force Iceland to use tax payer money to pay off foreign debt.

Iceland refused. There was a referendum and the people voted a lot of scum bag politicians out. Ended up putting banksters in jail. They've been on the road to recovery since.

a reply to: FyreByrd

Archons on ice, that sounds like a fun show.