posted on Feb, 20 2012 @ 08:07 AM
A recent article in Bloomberg highlights the success the Icelanders are having since telling the banks they weren't going to bail them out back in
Some highlights from the article:
The island’s households were helped by an agreement between the government and the banks, which are still partly controlled by the state, to forgive
debt exceeding 110 percent of home values. Icelands' banks have forgiven portions of loans equivalent to 13 percent of gross domestic product, easing
the debt burdens of more than a quarter of the population. They figured that if the banks were going to profit from the loans they should also share
in the risk associated with the loan.
Iceland’s $13 billion economy, which shrank 6.7 percent in 2009, grew 2.9 percent last year and will expand 2.4 percent this year and next, the
Paris-based OECD estimates.
Iceland’s special prosecutor has said it may indict as many as 90 people, while more than 200, including the former chief executives at the three
biggest banks, face criminal charges. Note that in the U.S. , NO top bank executives have faced criminal charges from the housing meltdown and
financial collapse in 2008.
Iceland has placed the needs of the people ahead of the needs of the big banks and it is paying off for the overall Icelandic economy.
Full article here: