reply to post by dimburg
Who said anything about life there being a bed of roses? We only said they (Iceland) refused to play along with the IMF by bailing out their banks,
and chose instead to rebuild their economy themselves. How would it have been any different than if Iceland did go along with the IMF? They'd be in
the same situation as Greece, Ireland, and Spain. Secondly, Iceland's economy has largely been tourism and fishing. It was never an industrial
economy. When the Global Recession hit, tourism took a dive the world over. This is about their recovery, and how much further along in that recovery
they are than the rest of Europe.
Iceland economy grows at fastest pace in four years
A Bruised Iceland Heals Amid
STOCKHOLM | Fri Jun 8, 2012 10:54am EDT
(Reuters) - Iceland's economy expanded in the first quarter at its fastest pace since its near-meltdown, powered by a surge in exports, tourism and
Gross domestic product (GDP) grew 2.4 percent quarter-on-quarter in the first three months of the year to put annual economic growth at 4.5 percent in
the period, the highest since the first quarter of 2008, data from the statistics office showed on Friday.
"It shows that the economy is growing rather rapidly, at least in an international comparison, at the moment," Islandsbanki Chief Economist Ingolfur
July 7, 2012
REYKJAVIK, Iceland — For a country that four years ago plunged into a financial abyss so deep it all but shut down overnight, Iceland seems to be
doing surprisingly well.
It has repaid, early, many of the international loans that kept it afloat. Unemployment is hovering around 6 percent, and falling. And while much of
Europe is struggling to pull itself out of the recessionary swamp, Iceland’s economy is expected to grow by 2.8 percent this year.
When the Global Recession hit, and banks throughout the US and EU were on the brink of failure, there were two paths to take - LET THEM FAIL, and
rebuild from the aftermath (Iceland) or BAILOUT, BAILOUT, BAILOUT, reward with billions of dollars the same institutions that created the fiscal mess,
so while they are paying off their execs with million-dollar bonuses for being "too big to fail" the economy falls into shambles (Everyone else)
The countries who chose to bailout STILL have their economies in shambles. The lone exceptions might by Germany and the USA, but for the USA it's only
been through stimulus spending that we pulled out of the recession, and we are still balanced on the edge of recession.
IMAGINE, if we had the same testicular fortitude as Iceland, and REFUSED to bailout those banks, instead using that same money to shore up the economy
directly (with loan guarantees to keep businesses running, or to take over insurance/investment funds that would have tanked under GS or JPMorgan,
etc). YES, the economy would still have gone into a tail spin just as it did, BUT, the difference being that once we recovered from it, it would not
be under the thumbs of the IMF.
(Again, just to reiterate, no one is claiming Iceland's economy is doing so great they're lining the streets in gold, TBH I don't that Iceland ever
had a great economy, it never ranked well in terms of world economies, but then it's a very small country with no industrial base.)
23-8-2012 by Blackmarketeer because: (no reason given)