The Icelandic Success Story. “Iceland’s approach… write down unsustainable debt, liquidate junk corporations and banks that failed, disincentivise the behaviour that caused the crisis, and provide help to the ordinary individuals in the real economy (not phoney ‘stimulus’ cash to campaign donors and big finance). Iceland has snapped out of its depression. The rest of the West, where banks continue to behave exactly as they did prior to the crisis, not so much.”

iceland

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RobertW December 9, 2012 at 4:44 pm

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oh, so some old white guy said something sensible…
anyone buying/consuming animal dung coffee needs to be thrown in jail.

drb December 9, 2012 at 6:18 pm

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Yeah they bailed out the people by “forgiving” their home mortgages and other debts, and thus stiffing investers from other countries. But they also cut their government spending by 25% and cut taxes to allow the private sector to invest in their own small business so that their economy could begin growing again. What do ya know austerity works. Nice when socialistic leaders only tell half the story.

RobertW December 9, 2012 at 6:25 pm

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Jubilee!

in the original meaning.

Navyvet2 December 10, 2012 at 8:32 am

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I’ve been to Iceland about 3 yrs ago, wonderful country and wonderful people. But man, it was expensive, mostly due to heavy taxes on everything. Restaurant food and drink were virtually prohibitive.
It’s good to hear they saved their country, but I wonder how it will effect future foreign investment. Lots of relatively small investors who simply put money in bank accts, lured by the high interest rates lost all their money. I understand that those are the risks you take when investing in anything, unless you are a big Democommie donor. I was going to dump a few $K in their banks, I sure am glad it didn’t.

flashingscotsman December 10, 2012 at 9:12 am

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I just read an article about a photographer that spent 3 weeks traveling Iceland. He had to sleep in his car whenever he wasn’t invited to stay with one of the locals, who were friendly and hospitable beyond belief. He said only a couple of times during that three weeks could he afford to splurge and get a burger and a beer, as each cost about ten bucks.

Ruben December 9, 2012 at 9:37 pm

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Finally, a story jcrowley1985 can sink his teeth into.

Minus his Pauline rants, I’m apt to prolly agree with him.

poppajoe49 December 9, 2012 at 9:43 pm

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Wait a minute!
You mean they didn’t invest 85% of their GDP on Green Energy projects to save their economy?
How did they manage to survive?

/sarc

ballaratbill December 9, 2012 at 10:03 pm

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Iceland’s president is obviously a student of Andrew Mellon’s school of economics, rather than running with the mob that blindly embraces the Keynesian economics of increasing taxes, printing money, running up public debt, saving unviable big business and destroying the wealth and savings of the ordinary people.
After WWI and having increased government debt from $1.5 billion in 1916 to $24 billion in 1919 because war obligations) the US went into an economic depression in 1920. On his inauguration in 1921 President Harding appointed Andrew Mellon as Secretary of the Treasury. Together rather than interfering in the operation of the private sector, they addressed the ills of government spending and the oppressive excesses of the progressive tax system that discouraged success.

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