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Sun Dec 2, 2012, 09:11 AM

Those silly Icelanders, putting the needs of people ahead of the Banksters ......


via truthdig:



Truthdiggers of the Week: Icelandís Leaders
Posted on Dec 1, 2012




One country refused to bail out its derelict banks and slash social spending amid the financial crisis. And guess what? Unlike the eurozone and the United States, itís making a sturdy comeback.

Icelandís stock market plunged 90 percent in 2008. Inflation reached 18 percent, unemployment shot up ninefold and its biggest banks failed. This was no recession. It was a full-blown depression.

Since then, the country has steadily improved. By September of this year, it repaid its IMF rescue loans ahead of schedule. Unemployment dropped by half and its economy will have grown by roughly 2.5 percent by the beginning of 2013.

So whatís Icelandís secret? According to the editors at Bloomberg News, itís a refusal to do what virtually every other nation that was pummeled by the crisis did: adopt policies of economic austerity.

Icelandís approach was the polar opposite of the U.S. and Europe, which rescued their banks and did little to aid indebted homeowners. Although lessons drawn from Iceland, with just 320,000 people and an economy based on fishing, aluminum production and tourism, might not be readily transferable to bigger countries, its rebound suggests thereís more than one way to recover from a financial meltdown.

Nothing distinguishes Iceland as much as its aid to consumers. To homeowners with negative equity, the country offered write-offs that would wipe out debt above 110 percent of the property value. The government also provided means-tested subsidies to reduce mortgage-interest expenses: Those with lower earnings, less home equity and children were granted the most generous support.


The International Monetary Fundís mission chief to Iceland has sung the nationís praises too. ďIceland has made significant achievements since the crisis,Ē Daria V. Zakharova told Bloomberg in August. ďWe have a very positive outlook on growth, especially for this year and next year because it appears to us that the growth is broad based.Ē ................(more)

The complete piece is at: http://www.truthdig.com/report/item/truthdigger_of_the_week_iceland_20121201/



17 replies, 2520 views

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Reply Those silly Icelanders, putting the needs of people ahead of the Banksters ...... (Original post)
marmar Dec 2012 OP
xchrom Dec 2012 #1
Democracyinkind Dec 2012 #2
heaven05 Dec 2012 #3
Starry Messenger Dec 2012 #4
Squinch Dec 2012 #5
AlbertCat Dec 2012 #6
Squinch Dec 2012 #7
AlbertCat Dec 2012 #13
Squinch Dec 2012 #14
UnrepentantLiberal Dec 2012 #8
leftstreet Dec 2012 #9
Fire Walk With Me Dec 2012 #10
smirkymonkey Dec 2012 #11
nashville_brook Dec 2012 #12
ShadesOfBlue Dec 2012 #15
Egalitarian Thug Dec 2012 #17
Heywood J Dec 2012 #16

Response to marmar (Original post)

Sun Dec 2, 2012, 09:12 AM

1. du rec. nt

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Response to marmar (Original post)

Sun Dec 2, 2012, 09:16 AM

2. Iceland.. The elephant in the living room of global capitalism...


There's a reason no one seems to be talking about it.

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Response to marmar (Original post)

Sun Dec 2, 2012, 10:49 AM

3. Is

something as socially conscious as this action seems to be, toooooo complicated and dangerous for the people of our country and eurozone countries to initiate? Just a question.

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Response to marmar (Original post)

Sun Dec 2, 2012, 10:54 AM

4. This needs to be plastered all over.

The death-cult of "entitlement" cutting is freaking me out this week.

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Response to marmar (Original post)

Sun Dec 2, 2012, 10:54 AM

5. Waaaaiiiit a minute! Isn't that EXACTLY what Paul Krugman told us to do? nt

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Response to Squinch (Reply #5)

Sun Dec 2, 2012, 11:20 AM

6. Isn't that EXACTLY what Paul Krugman told us to do?

Isn't that kinda what we did in the 1930's too?

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Response to AlbertCat (Reply #6)

Sun Dec 2, 2012, 11:22 AM

7. That and Glass Steagall

I miss Glass Steagall, don't you?

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Response to Squinch (Reply #7)

Sun Dec 2, 2012, 12:05 PM

13. I miss Glass Steagall, don't you?

Hell yeah!

who said a bank can gamble with MY MONEY without MY PERMISSION?

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Response to AlbertCat (Reply #13)

Sun Dec 2, 2012, 12:45 PM

14. Congress. The morons.

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Response to marmar (Original post)

Sun Dec 2, 2012, 11:32 AM

8. Our leaders were bought

 

and they stayed bought.

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Response to marmar (Original post)

Sun Dec 2, 2012, 11:33 AM

9. DURec

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Response to marmar (Original post)

Sun Dec 2, 2012, 11:48 AM

10. Massive K&R! Stand up fight back!

 

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Response to marmar (Original post)

Sun Dec 2, 2012, 11:51 AM

11. I am convinced that Scandinavian society is far superior to our own.

I would move to a Scandinavian country if I could.

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Response to marmar (Original post)

Sun Dec 2, 2012, 11:58 AM

12. k and r

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Response to marmar (Original post)

Sun Dec 2, 2012, 01:15 PM

15. Slow your rolll

About a month ago I came across a report regarding this situation on BBC. The BBC is thankfully the one source where the journalists act like journalists and try to present both sides.

Based on the BBC report Iceland is indeed on a rebound after the economic disaster that took place in 2008. But the BBC also pointed out some of the problems that go underreported, one of which was the fact that Iceland lost a good chunk of its citizens during the crisis and recovery and that that more than anything accounted for its drop in unemployment (in other words a huge number of its citizens who lost their jobs during the criisis ended up leaving the country to find work). The BBC report also talked to officials from Iceland who maintained that the country was far from being out of the woods and thus there were still pitfalls that they are going to have to get around. Yes, that is still better than where they were four years ago but the situation is not nearly as rosey a some are trying to make it out as being.

I know we all want to champion stories of the happy ever after ending when we thumb our noses at the banks. And when I first came across the BBC promotion of Iceland's rebound I thought I had found one. But as I listened I realized it wasn't as black and white as I hoped. Besides....with Iceland's overall low population one could argue that country isn't exactly the model to use when discussing if the policies could have worked in the larger nations such as the US.

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Response to ShadesOfBlue (Reply #15)

Mon Dec 3, 2012, 08:46 AM

17. First, the BBC, while light years ahead of our infotainment industry is hardly the shinning light

 

of journalistic standards. They invariably repeat every scintilla of blather that the economic royalists put out regardless of factual evidence and just as reliably ignore or under-report any contradictory information.

Second, BBC is owned by the British government which, in turn, is owned by the BofE, Barclays, etc. who were the largest recipients of Iceland's revolutionary "fuck you".

So while the news about Iceland is not universally good, they have fared far better than any other nation that was sucked into the G$ scam.

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Response to marmar (Original post)

Mon Dec 3, 2012, 08:23 AM

16. Have they settled the Icesave issue yet?

I seem to recall that being a big issue with the rest of Europe, with other countries complaining that they had to bail out Iceland with their equivalent of the FDIC. It doesn't look like their rebound came for free.

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