posted on Oct, 27 2011 @ 09:26 AM
reply to post by mr-lizard
There are two very important points to keep in mind here.
1. Iceland is still following through with very painful economic austerity measures.
2. We cannot compare Iceland to for example say, Greece.
The banks got Iceland into the mess they were in. The Greek government got Greece into the trouble they are in.
Greece has a hugely bloated bureracracy that needs its fat trimmed. It runs massive social program after social program that need to be reigned in,
and it holds nationalized businesses, for example the Greek railway that year after year post huge losses. Why hasnt this railway been sold? Why
hasnt government been cut? Why do capable citizens who are more than able to work given welfare checks with very little requirements?
Even if Greece cuts itself loose from the EU and prints its own money and defaults on its debt, they have no choice but to enact tough austerity. The
only alternative is printing money to pay for its huge deficit budgets. This leads to massive inflation and eventual bankrupcy and much worse economy
than accepting austerity and fixing their books.
edit on 27-10-2011 by nightbringr because: (no reason given)