5 ms·
It is. I think the reasons for it are pretty simple: They didn't experience a huge housing bubble (like Spain) They don't have a big productivity problem (like
by pachydermic 13y ago
It is. I think the reasons for it are pretty simple:
They didn't experience a huge housing bubble (like Spain)
They don't have a big productivity problem (like Greece)
Their government's finances weren't totally unsustainable (like Spain or Greece)
They don't depend a great deal on tourism (like Greece). No one seems to want to go on vacation to a rioting and unstable country.
Hopefully things will improve for those countries... but it's pretty easy to be a pessimist given the situation.
- douglasisshiny 13y agoSpain's government finances were not unsustainable prior to the recession. In fact, they were in pretty good shape. Spain did, however, face a crippling housing bubble due to the surge of outside investment.
- hkmurakami 13y agoThe issue with Spain lies is the (private) banks, not government finances. Unlike Greece, where the government needs to get bailed out, in Spain it is the banks that are in trouble.
- toomuchtodo 13y agoThe banks were in trouble in Ireland, and Ireland stood behind them (which destroyed them). The banks in Iceland were in trouble and Iceland walked away from them. Much less pain in Iceland compared to what Ireland is going through. When in doubt and able, default.
- kalleboo 13y agoIceland had their own currency though, and from the looks of a graph I googled up they inflated the ISK 100% since before the crisis. Ireland and Spain don't have that option.
- toomuchtodo 13y agoThey do have the option; walk away from the Euro.
- kalleboo 13y agoTechnically? Yes, that's probably their best option. Politically? Very, very difficult.