Economic Geography Lesson

[Andrew49]

Iceland Is No Ireland as State Free of Bank Debt,

Iceland’s President Olafur R. Grimsson said his country is better off than Ireland thanks to the government’s decision to allow the banks to fail two years ago and because the krona could be devalued.
“The difference is that in Iceland we allowed the banks to fail. These were private banks and we didn’t pump money into them in order to keep them going; the state did not shoulder the responsibility of the failed private banks.”
Source (http://www.bloomberg.com/news/2010-11-26/iceland-faring-much-better-after-permitting-banks-to-fail-grimsson-says.html)

Too true, Iceland is no Ireland as we have a very corrupt elite as well

[matt]

...theirs are facing jail.
I hope that finally persuades the Icelanders that their interests are best served by complete and absolute self-governance.
Thinking of the British reaction to losses in the Icelandic crash, I wonder how we'd fare if they were similarly burned from these quarters...
Of course, my answer is 'aww...fck 'em.'

[morticia]

They'd be too busy trying to save their banks...

[Andrew49]

“How far can we ask ordinary people -- farmers and fishermen and teachers and doctors and nurses -- to shoulder the responsibility of failed private banks,” said Grimsson. “That question, which has been at the core of the Icesave issue, will now be the burning issue in many European countries.”

Meanwhile in Ireland - the un-waged, those on the minimum wage and the low and middle-income .......

[Ah Well]

“How far can we ask ordinary people -- farmers and fishermen and teachers and doctors and nurses -- to shoulder the responsibility of failed private banks,” said Grimsson. “That question, which has been at the core of the Icesave issue, will now be the burning issue in many European countries.”

Meanwhile in Ireland - the un-waged, those on the minimum wage and the low and middle-income .......

That excellent Article by Krugman springs to mind ...http://www.politicalworld.org/showthread.php?t=5736

adding to the Irish list ... our kids ... their kids ..... ..........................

[morticia]

mmmm, default. How to do it??? Should we accept the bailout, restructure the banks, make sure we've a semi-functional banking system, then restructure the sovereign debt?? Or is it likely to be a complete international implosion?? Or will we be allowed to default on bank debt, but not that of the sovereign??

This needs to be planned cleverly, folks. How are they going to do it??

Makes one wonder what would have happened in 2008 if some or all of the banks had been let go??

[Andrew49]

That excellent Article by Krugman springs to mind ...http://www.politicalworld.org/showthread.php?t=5736

adding to the Irish list ... our kids ... their kids ..... ..........................

That is some article ... the kind of writing worthy of Swift himself.

[TotalMayhem]

Iceland Is No Ireland

Identity Crisis in Europe (http://www.politicalworld.org/showpost.php?p=96214&postcount=26)

[Skrimshander]

mmmm, default. How to do it??? Should we accept the bailout, restructure the banks, make sure we've a semi-functional banking system, then restructure the sovereign debt?? Or is it likely to be a complete international implosion?? Or will we be allowed to default on bank debt, but not that of the sovereign??

This needs to be planned cleverly, folks. How are they going to do it??

Makes one wonder what would have happened in 2008 if some or all of the banks had been let go??

Whats all this WE talk pale face?:D:D:D
CLever planning does not compute with our current oligarchy...no wait a second, they have been clever at protecting themselves,either that or we've been very lazy... I guess time will tell

[Andrew49]

Iceland is to repay the Netherlands and Britain the full amount that they advanced to their citizens who lost money in the failure of the Icelandic bank Icesave. The repayments will begin in July 2016.

The deal must be approved by the parliament, the president and the government of Iceland.

Britain and the Netherlands held intense discussions with Iceland ahead of a 6 March Icelandic referendum on a deal under which Iceland would repay the two countries €3.9bn to compensate for money they paid to 340,000 of their citizens hit by the collapse of the online Icesave bank in October 2008.

However, after more than 93% of Icelandic voters rejected the deal to repay the money by 2024 at what was widely considered a high interest rate of 5.5%, the talks stalled.

RTE News (http://www.rte.ie/news/2010/1209/iceland.html?utm_source=twitterfeed&utm_medium=twitter)

[TotalMayhem]

Another referendum? Reminds me of the Irish Lisbon vote.

Which part of the word 'no' is it, the Brits and the Dutch don't understand?

[kerdasi amaq]

Mind you, their govenment tried hard to stick the Icelandic people with the bill. They were fortunate that their President had the power to put the bill to referendum, instead of meekly signing it; as ours is expected to do.

There is a democratic deficit in this country which needs to be addressed.

[janepaisley]

Iceland is to repay the Netherlands and Britain the full amount that they advanced to their citizens who lost money in the failure of the Icelandic bank Icesave. The repayments will begin in July 2016.

The deal must be approved by the parliament, the president and the government of Iceland.

Britain and the Netherlands held intense discussions with Iceland ahead of a 6 March Icelandic referendum on a deal under which Iceland would repay the two countries €3.9bn to compensate for money they paid to 340,000 of their citizens hit by the collapse of the online Icesave bank in October 2008.

However, after more than 93% of Icelandic voters rejected the deal to repay the money by 2024 at what was widely considered a high interest rate of 5.5%, the talks stalled.

RTE News (http://www.rte.ie/news/2010/1209/iceland.html?utm_source=twitterfeed&utm_medium=twitter)

what a misleading headline when you read into the article