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>> Could anyone imagine if the government let the banks suffocate in 2008? I've heard from multiple sources that Iceland let their banks fail, and they're actu

>> Could anyone imagine if the government let the banks suffocate in 2008? I've heard from multiple sources that Iceland let their banks fail, and they're actually doing better than most now. http://www.washingtonsblog.com/2011/11/key-lesson-from-iceland-crisis-let-banks-fail.html http://www.washingtonsblog.com/2011/11/key-lesson-from-icela...

Intermernet 11y ago
Thanks, I've bookmarked that link. It's actually very interesting, and I'm surprised is hasn't been more widely discussed, or used as an example. Another link (from that article) straight from the IMF, with some more info: http://www.imf.org/external/pubs/ft/survey/so/2011/SurveyartF.htm http://www.imf.org/external/pubs/ft/survey/so/2011/Surveyart...
CHY872 11y ago
That's very different; Iceland's total debt was tiny (compared) as it is a very small island (Iceland's debt was perhaps 1/12 the size of the debt held by Lehman Brothers). Very annoying if you had money stored in Iceland, but otherwise not a huge problem. The US letting its banks fail would possibly have brought down the entire economy, leading to a far, far more severe crisis. That's what the parent is speculating about.
nickpsecurity 11y ago
Iceland did a combination of things. They put dirty politicians in jail, got better ones in office, seized the banking system, re-focused it on stable growth rather than greed, and knocked out fraudulent debts with laws. The U.S. could've done quite a bit of that. We could've even pitted Wall St's geniuses against each other by talking the companies and then offering financial incentives to those that help ensure bailout dollars only go to right place. And so on and so forth. Instead, here's hundreds of billions, don't tell us what you do with it, and criminal immunity. Some kind of "democracy" the U.S. is these days...
- spacecowboy_lon 11y ago
  these fraudulent debts would be those UK pensioners and UK local government who had savings with the Icelandic banks.
  - nickpsecurity 11y ago
    Possible. I was talking about the debt on the side of Icelandic bankers working with dirty politicians to make their banks money and take people's homes with predatory practices. The same crap they did over here. Sorry to hear it if people in UK got caught up in the mess.

Intermernet 11y ago

Thanks, I've bookmarked that link. It's actually very interesting, and I'm surprised is hasn't been more widely discussed, or used as an example. Another link (from that article) straight from the IMF, with some more info: http://www.imf.org/external/pubs/ft/survey/so/2011/SurveyartF.htm http://www.imf.org/external/pubs/ft/survey/so/2011/Surveyart...

CHY872 11y ago

That's very different; Iceland's total debt was tiny (compared) as it is a very small island (Iceland's debt was perhaps 1/12 the size of the debt held by Lehman Brothers). Very annoying if you had money stored in Iceland, but otherwise not a huge problem. The US letting its banks fail would possibly have brought down the entire economy, leading to a far, far more severe crisis. That's what the parent is speculating about.

nickpsecurity 11y ago

Iceland did a combination of things. They put dirty politicians in jail, got better ones in office, seized the banking system, re-focused it on stable growth rather than greed, and knocked out fraudulent debts with laws. The U.S. could've done quite a bit of that. We could've even pitted Wall St's geniuses against each other by talking the companies and then offering financial incentives to those that help ensure bailout dollars only go to right place. And so on and so forth. Instead, here's hundreds of billions, don't tell us what you do with it, and criminal immunity. Some kind of "democracy" the U.S. is these days...

spacecowboy_lon 11y ago
these fraudulent debts would be those UK pensioners and UK local government who had savings with the Icelandic banks.
- nickpsecurity 11y ago
  Possible. I was talking about the debt on the side of Icelandic bankers working with dirty politicians to make their banks money and take people's homes with predatory practices. The same crap they did over here. Sorry to hear it if people in UK got caught up in the mess.