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The PR skills of Iceland's government are terrible. They keep saying OMG we are going to go bankrupt. Surely then no one is going to lend them any money. I don
by vikram 18y ago
The PR skills of Iceland's government are terrible. They keep saying OMG we are going to go bankrupt. Surely then no one is going to lend them any money.
I don't think other countries aren't asking for debts to be repaid. Then it's just the creditor of the banks which are asking for their money. Presumably the savers want to take their money out. So it's a run on all the banks of the country. But since they already nationalized the banks, surely they just have to print more currency. The currency takes a hit and it feels like Russia in the 80s, but it's probably still better than other outcomes.
- pjesi 18y agoActually no, they are not saying we are going bankrupt, the world media is.
- marvin 18y agoThere's not a chance the Icelandic government will actually go bankrupt. It would be historic. Sovereign states do go bankrupt once in a while, but I've never heard of one choosing to bankrupt itself in order to partially pay off the bad debt of a corporation. If Iceland has obligations to some of these companies, they'll likely just default on the debt. The end result would be the same, but perhaps with somewhat less political turmoil.