Iceland did not bail out the banks or the bank investors and its economy is thriving, proving that t

Iceland did not bail out the banks or the bank investors and its economy is thriving, proving that the the US-Irish model of bailing out the banks with taxpayer money was harmful unless you were a wealthy bank investor

truthlover.newsvine.c om

Unlike other nations, including the U.S. and Ireland, which injected billions of dollars of capital into their financial institutions to keep them afloat, Iceland placed its biggest lenders in receivership. It chose not to protect creditors of the country's banks, whose assets had ballooned to $209 billion, 11 times gross domestic product.With the economy projected to grow 3 percent this year, Iceland's decision to let the banks fail is looking smart -- and may prove to be a model for others.

(visit the link for the full news article)

So, the lie is proved. Capitalism works. If banks and businesses make poor decisions, they should fail. There is no such thing as "too big to fail". The whole bailout was a looting of the treasury by our "Criminal in Chief"(I mean bush and owebowma) and their cronies. There seriously needs to be impeachment and then criminal charges brought against both administrations and the "federal reserve" board members. This has to end, NOW!

truthlover.newsvine.c om
(visit the link for the full news article)

reply to post by sonofliberty1776


Are you forgetting the billions the UK spent bailing out Iceland banking?

news.bbc.co.uk...

Originally posted by MattC
reply to post by sonofliberty1776

 

Are you forgetting the billions the UK spent bailing out Iceland banking?

news.bbc.co.uk...

edit on 5-2-2011 by MattC because: (no reason given)

LOL. If they did, I wish they would have done ours too. I do not believe in this "bailout" crap. Let them go bankrupt. Let the investors take their lumps. Maybe everybody will start investing more intelligently if there is real risk of real loss.

Originally posted by MattC
reply to post by sonofliberty1776

 

Are you forgetting the billions the UK spent bailing out Iceland banking?

news.bbc.co.uk...

edit on 5-2-2011 by MattC because: (no reason given)

Pretty misleading there weren't you pal?

Tens of thousands more British savers have had their savings, worth more than £3bn, protected by the UK authorities.

ING Direct has agreed to take over the £2.5bn of deposits of 160,000 UK customers of Kaupthing Edge, the online arm of Iceland's biggest bank.

The Brits bailed out their own. I don't want to call you a liar for posting that as an attempt to discredit what happened in Iceland, but "misleading" is the nicest thing I can say.

Capitalism CAN work. Socialism CAN work. Communism CAN work. The magic ingredient for any of these recipes is godly conduct. When I say "godly conduct" I mean the sort of conduct that is truly civilized. Another way to say it might be; If people were both orderly and charitable across all levels of responsibilities, any form of government CAN work. The most conducive form to the human animal while remaining godly is Tribalism (localized governments). One Tribe should not just be cliche regarding the unity of distant but localized peoples.

Nonetheless, while under imperial rule, regardless of the color or meaning of such flags, we should be holding ourselves to godly conduct (orderly and charitable) and also demand that those who wield such far reaching powers also conduct themselves with gentle control and responsible/reasonable freedoms. We are neither truly free (and therefore lack true control), nor are we truly gentle (we must consume to live as any living thing does). Balance is in understanding and expressing understanding.

Children of Life reflect Light while those who claim their own freedom are entangled by their inability to maintain course in the dark and are forever lost. Children of Light reflect Life while those who seek to obtain are trapped by their own gravity and whither away into nothing. Some people are lost wanderers, some are black holes, and some are oases of Life. It is not corrupt forms of government which derail civilization, it is the abundance of men conducting themselves as animals (without godliness).

Consider, for a solar system to harbor life, what must occur?
Orderly relations and charitable provision of at least one source of life (in our case, the sun).
A solar system without orderly relations is not a system (chaos). A solar system which is rooted in a black hole self-destructs (pride).

The spiritual man, lasting governance, civility, solar systems... these are all governed by the same Gracious Judges... these are all governed by Life (who is also alive).

I don't know where you get the claim that Iceland didn't get any bailouts, because they did. It sort of takes the wind out of your assertion.

Iceland Gets $4.6 Billion Bailout From IMF, Nordics (Update3)

Iceland got a $4.6 billion bailout from the International Monetary Fund and four Nordic countries to help resurrect the island's economy after the failure of its biggest banks and the collapse of its currency.

Iceland agrees $6 billion deal with IMF

The IMF may provide about $1 billion in emergency cash for Iceland with the balance lent by Norway, Sweden and Denmark and additional money possibly coming from Russia and Japan. Iceland, which has the same population as Coventry, had hoped that a bigger loan from Russia would save it from the humiliation and financial strictures of an IMF bailout.

Iceland received more than 10 billion in bailout funds with half of that going to pay back UK borrowers
Iceland and the IMF: the bailout merry go round

IMF: Iceland is stabilising as debt crisis eases

ICELAND’S economy has stabilised further and measures to ensure a restructuring of debt on the crisis-hit island remain vital, the International Monetary Fund (IMF) said yesterday.

The top three Icelandic banks collapsed in October 2008 and the country needed a bailout led by the IMF.

The country actually went bankrupt and received a huge bailout. I don't know how on Earth you can claim it didn't receive a bailout.

reply to post by sonofliberty1776


Are you sure this story is accurate? Iceland took a 4 billion dollar loan from Russia with the assistance of the US government. They also received a loan from the IMF. Icelands largest bank received a vail out loan from Sweden.

Ic eland receives 4 Billion dollar loan from Russia

Iceland said it will borrow €4bn (£3.1bn) from the Russian Treasury, after announcing this morning that it would nationalise its second biggest bank, Landsbanki, and give a £400m loan to its largest lender, Kaupthing.

Iceland requests US assistance to get loans

Iceland gets IMF loan

Not trying to derail the thread.. Just wanted to point out that they had to get loans in order to avoid the country from completely shutting down.

This article is grossly inaccurate, Iceland took a huge bailout, and is even now kowtowing to the IMF, which is handling it's "debt restructuring". Whatever the author of that piece was trying to prove, he failed. Maybe he's secretly trying to tell us to let the IMF run our economy, like it does Icelands? If anything, it shows that the bailout salvaged their economy and is now allowing them to grow.

There is a lot of conflicting information going on here, so lets go to the source www.imf.org...

Iceland loans from IMF

2008 $560 Million
2009 $105 Million
2010 $210 Million

Total since GFC = $875 Million, not even $1 billion.

For Iceland to go in and clean up there banking sector, it has delivered a great deal of confidence to the system. When the banks start playing 'heads I win, tails you lose' no one has clue what is going on and things are out of control. Just hushing up the problem and sweeping it under the carpet does not fix it, it just hides it for a while as it continues to rot and stinks up the place.

reply to post by sonofliberty1776


He wasn't misleading at all.... the OP was misleading.... Look at all the posts here showing proof of icelands bailout....


Such bias

en.wikipedia.org...]2008-2010 Icelandic Crisis

[...] Iceland is relying on a $4.6 billion IMF-led loan to rebuild its economy. Grimsson said today the government may not need the entire amount. (they've used $2.1bn to date)

[...] “The taxpayer has no realistic prospect of being able to save their banks, such is the magnitude of their bad loans and their extraordinary dependence on central bank support,” wrote Michael Derks, chief strategist in London at foreign-exchange firm FXPro. “Both junior and senior bondholders in these insolvent banks need to suffer huge haircuts,” he said.

Forcing bond holders to “share the burden,” may help the euro region remain intact, Derks wrote.

[...] Kaupthing Bank hf, Landsbanki and Glitnir Bank hf failed within weeks of each other in October 2008 after they were unable to secure short-term funding. The banking crisis led to an 80 percent slump in the krona against the euro offshore, until the slump was stemmed by the introduction of capital controls at the end of 2008.

Bust Is Better Than a Bailout

80% devaluation of it's currency? The US would never survive something like that. Iceland is a tiny nation, total population of 320,000. They can go bust and walk away from the debt.

Don't forget, Britain had to bear a large portion of that debt:

Britain’s Shame on the Icelandic Debt

Iceland's crisis better than Irish

Because Icelandic banks were disproportionately large compared to the country's economy -- their assets were once worth 11 times Iceland's total gross domestic product (GDP)--, the tiny country did not have the option of bailing out the banks and had to let them fail.

Most of Iceland's debt wasn't held by Iceland's citizens, they were held by other members of the EU, and a lot of them got shafted.

Iceland's government moved to nationalize some of it's banks;
Iceland nationalises Glitnir bank
So true, they allowed the private banks to fail, but some of those private banks become nationalized and were propped up with bailout funds.

I don't know what this authors intentions for this article were, is he suggesting we all follow Iceland's method of a near-total collapse, borrowing money from the IMF, the EU, nationalizing banks, even borrowing money from Russia? Maybe let our currency devalue by 80% (so naturally exports will pick up)?