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A Country Decided Not To Bail Out Its Banks, And This Is What Happened

Iceland had a version of our 2007 banking crisis. The banks however, were not given any taxpayer funded, welfare bailouts.

Want a booming economic recovery? Just do the opposite of what the U.S. did.

by Anonymousreply 2603/08/2013

Iceland has a population of about 100,000 IIRC.

This would have been catastrophic for the US.

by Anonymousreply 103/07/2013

Did you watch it? Do you think currency control and taking care of the poor would have passed congress????? Look at how Obama Care is a Right Wing republican riot inducing word.

by Anonymousreply 203/07/2013

What r1 said. Talk about false equivalencies. Without bailouts millions of people would have lost work who kept it, millions more lost their homes. Iceland has a strong social safety net already in existence and has a population roughly the size of Green Bay.

by Anonymousreply 303/07/2013

Economic policy does not have universal application. Just because something worked in Iceland doesn't necessarily mean that it will work in the US. Iceland's economy is about 1% of the size of the US economy.

by Anonymousreply 403/07/2013

(From Forbes.com)

“Banks were rendered insolvent in 2008 and are struggling today because they have loans and securities that are a collection of loans on their balance sheets that aren’t worth what they were five years ago. The loans themselves are in some instances non-performing, and then the markets don’t trust the securities that comprise numerous non-performing loans. Also, prisoners of their own past errors, banks are understandably gun shy, though perhaps relieved that they’ve been given a new lease on life on the taxpayer dime.

But imagine if those banks had been allowed to file for bankruptcy? If so, loans and securities alike would have been sold at bargain basement prices to solvent banks, not to mention intrepid investors looking for value.

Considering the solvent banks alone, had they been able to purchase their competitors at the bottom, today they would have highly profitable loans and securities on their books that would have them far more able to aggressively lend to businesses and individuals.”

by Anonymousreply 503/07/2013

Ask other Europeans (especially Brits) who had home loans through Icelandic banks before 2007 what they think of Iceland's banking policies.

by Anonymousreply 603/07/2013

Meant to include an URL.

by Anonymousreply 703/07/2013

There are 0.3 million Icelanders. Compare with 7.5 people on a smaller island -- Long Island.

We have 1000 times their population.

by Anonymousreply 803/07/2013

The bailouts were about saving the established 1%. They should've just let them fail and used the bailout money to fund public works and clean energy.

We were robbed and hobbled.

by Anonymousreply 903/07/2013

What R9 said.

by Anonymousreply 1003/07/2013

Not disagreeing, R9 but what worked for Iceland wouldn't necessarily have worked here.

Plus, if Iceland were doing so well, they wouldn't have those desperate "Have a layover in Iceland" ads you see for every airline.

by Anonymousreply 1103/07/2013

In Iceland they arrested the bankers who looted the national treasury.

In America we give them government positions.

by Anonymousreply 1203/07/2013

Their banks were bailed out by other countries, doofuss.

by Anonymousreply 1303/07/2013

It worked in Iceland, because their 1 Percenters didn't rig the system to their favor.

In a nutshell the example of Iceland points out all the flaws that cripple the US government and the US economy.

by Anonymousreply 1403/07/2013

[quote]Their banks were bailed out by other countries, doofuss.

Others countries whose banks got their claws into Iceland and would have bled it dry if permitted to do so.

If we have trillions in debt, who had the trilions in actual existing funds to lend it to us in the first place? No one did. The banks lend nothing tangible therefore they are owed nothing tangible.

by Anonymousreply 1503/07/2013

Since everybody knows this worked, why won't GERMANY take heed from it?

by Anonymousreply 1603/07/2013

The HuffPo today reported that American wealth has rebounded past pre-recession levels. Job growth has now exceed jobs lost.

So if you are in trouble, it's YOU, not the economy.

by Anonymousreply 1703/07/2013

Fuck Iceland--they deserved what they got. I went there in the 1960s on a layover on my way to Europe and saw signs in store windows that said, in English, "no dogs or Americans allowed". They are also responsible for the extinction of the Great Auk. Every one of those fuckers can get covered with boiling hot lava from one of their volcanoes--to hell with them all.

by Anonymousreply 1803/07/2013

Yeah but let's be honest, R11, Americans are cowed by fear. 9/11, economic collapse...the way they got away with this was convincing us - without *really* explaining anything - that their pain was OUR pain.

Capitalism, investment is about risk, win or lose. But these institutions didn't have the stomach to accept responsibility for their losses so what's that? It's not capitalism anymore when the public purse is used to absorb private losses. The system should've been allowed to collapse. That would've brought about tremendous reform - which was exactly what the establishment was trying to avoid.

by Anonymousreply 1903/07/2013

Not true R17.

by Anonymousreply 2003/07/2013

R17 was telling the unemployed the same thing in 2004

by Anonymousreply 2103/07/2013

Dear OP,

Let me tell you that Fox News is so much better than Al Jazeera from which you quoted the video.

by Anonymousreply 2203/07/2013

You are wrong, r22.

by Anonymousreply 2303/08/2013

If I had to choose between Faux and Al Jazeera?

Al Jazeera, hands down.

by Anonymousreply 2403/08/2013

But you don't HAVE to choose, R24. They're both pieces of shit, just from different ends of the news spectrum. I follow AJ on Facebook and it just appalls me how awful their "journalism" is.

by Anonymousreply 2503/08/2013

Thankfully, r25.

by Anonymousreply 2603/08/2013
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