MMC
11-07-2011, 02:05 AM
http://news.yahoo.com/key-lesson-iceland-crisis-let-banks-fail-003849604.html
Three years after Iceland's banks collapsed and the country teetered on the brink, its economy is recovering, proof that governments should let failing lenders go bust and protect taxpayers, analysts say.
The North Atlantic island saw its three biggest banks go belly-up in the October 2008 as its overstretched financial sector collapsed under the weight of the global crisis sparked by the crash of US investment giant Lehman Brothers.
The banks became insolvent within a matter of weeks and Reykjavik was forced to let them fail and seek a $2.25 billion bailout from the International Monetary Fund.
"The lesson that could be learned from Iceland's way of handling its crisis is that it is important to shield taxpayers and government finances from bearing the cost of a financial crisis to the extent possible," Islandsbanki analyst Jon Bjarki Bentsson told AFP.
Iceland's banking sector had assets worth 11 times the country's total gross domestic product (GDP) at their peak.
Nobel Prize-winning US economist Paul Krugman echoed Bentsson.
"Where everyone else was fixated on trying to placate international investors, Iceland imposed temporary controls on the movement of capital to give itself room to maneuver," he said.
"Iceland's economic rebound shows the advantages of being outside the euro. This notion that by joining the euro you would be safe would come as news to the Spaniards," he said, referring to one of the key eurozone states struggling to put its public finances in order.
Iceland's example cannot be directly compared to the dramatic problems currently seen in Greece or Italy, however.....snip~
Notice How Krugman talks shit and does the flip flop on the bail out. He had no problem going with the Stimulus package. Didn't blame obama and the Dems for that shit. If they would have never given this retard a Nobel peace prize we wouldnt have to listen to this dipshit. Economics use to be his Forte. Now he is nothing but a Op-Ed writer that get to express his wittle fweewings against Republicans and Fiscal Conservative Priniciples.
Iceland is Different and so to Ireland. Both Countries should tell the French and Sarkosy to Stick it up his azz when it come to the EU. What people in the World afraid to stand up to the pussified French. Fricken lames are as bad as the Sunni and Couldnt win a Conflict on their own if they had to. What makes it so bad is the POL's in this Country actually listen to The French. As if they have some sort of Contribution to give. That they want to help us out. What a crock of shit. Quit listening to those EU Economists. http://politirant.com/Smileys/oldrant/angry5.gif
Three years after Iceland's banks collapsed and the country teetered on the brink, its economy is recovering, proof that governments should let failing lenders go bust and protect taxpayers, analysts say.
The North Atlantic island saw its three biggest banks go belly-up in the October 2008 as its overstretched financial sector collapsed under the weight of the global crisis sparked by the crash of US investment giant Lehman Brothers.
The banks became insolvent within a matter of weeks and Reykjavik was forced to let them fail and seek a $2.25 billion bailout from the International Monetary Fund.
"The lesson that could be learned from Iceland's way of handling its crisis is that it is important to shield taxpayers and government finances from bearing the cost of a financial crisis to the extent possible," Islandsbanki analyst Jon Bjarki Bentsson told AFP.
Iceland's banking sector had assets worth 11 times the country's total gross domestic product (GDP) at their peak.
Nobel Prize-winning US economist Paul Krugman echoed Bentsson.
"Where everyone else was fixated on trying to placate international investors, Iceland imposed temporary controls on the movement of capital to give itself room to maneuver," he said.
"Iceland's economic rebound shows the advantages of being outside the euro. This notion that by joining the euro you would be safe would come as news to the Spaniards," he said, referring to one of the key eurozone states struggling to put its public finances in order.
Iceland's example cannot be directly compared to the dramatic problems currently seen in Greece or Italy, however.....snip~
Notice How Krugman talks shit and does the flip flop on the bail out. He had no problem going with the Stimulus package. Didn't blame obama and the Dems for that shit. If they would have never given this retard a Nobel peace prize we wouldnt have to listen to this dipshit. Economics use to be his Forte. Now he is nothing but a Op-Ed writer that get to express his wittle fweewings against Republicans and Fiscal Conservative Priniciples.
Iceland is Different and so to Ireland. Both Countries should tell the French and Sarkosy to Stick it up his azz when it come to the EU. What people in the World afraid to stand up to the pussified French. Fricken lames are as bad as the Sunni and Couldnt win a Conflict on their own if they had to. What makes it so bad is the POL's in this Country actually listen to The French. As if they have some sort of Contribution to give. That they want to help us out. What a crock of shit. Quit listening to those EU Economists. http://politirant.com/Smileys/oldrant/angry5.gif