reply to post by Wrabbit2000
1. Iceland is a population of only 300,000. Their major economy in the past was fishing industries and a bit of tourism.
2. When the bankers came, there was a flush of hot money in Iceland. As those easy money circulated, wealth was passed on to them. Within less than
one generation, they springboard from fishermen and tour guides to finance management professionals for all those wealth there.
The well heeled and the corrupted came into the country. Property and rental prices soared like nothing before. Tax evaders and wealth hoarders
continue to fund the legalised ponzi schemes in the banks covered and hoodwinked the world masses with its illusion of respectability and honesty.
And like all ponzi schemes, it will have to end at some point. It came and crashed around our world, with Iceland being one of them. The money was
gone - savings, bank deposits, mortgages, stocks, etc and needed IMF bailout.
3.Icelanders said screw it, and refuse loans as well as bailouts. Banks collapsed and foreign banks had huge shortfalls in their balance sheets, and
investors fled. Life went on, and Iceland was left alone.
4. With capital having fled iceland, its own currency fell as there are no longer investments or investors whom would trust icelanders, they faced
unemployment and local debts to fellow icelanders, along with the high cost of imports and inflation.
5. Having enjoyed the good life during the ponzi years, having tasted immense wealth, majority of the icelanders cannot adjust back to the far simple
fishing lifestyles - not with local debts,inflation, low wages, low social expenditures and unemployment to pay.
6. They see the greedy and corrupted previous govt as the only ones who can bring back the illusions of wealth, as any politician during elections can
make all kinds of claims with no necessity to fulfill them once in power, except to rob the citizens blind further.
The majority are deluded. The only way for Iceland to rise again is that they must PAY back the EU loans and honor the investments contracts that were
arbitarily cancelled when Iceland refused to pay. Now they must pay, and suffer austerity like the rest of EU, and worse, they have little resource to
fuel GDP rise unlike the rest while making repayments, and thus will not have any revenue for growth as all revenues will be spent to pay off debts.
They will be even worse off, as those debts will take a few generations to pay off. They will not see the influx of wealth again as it did before, as
govts have more regulations now to control. WHat the majority desire is only a delusion conjured up by the previous govt that good times will come
back if they are voted in and rejoined EU, but not mention of the consequences.
Better the icelanders adjust and adapt back to the simpler way of life - improving and bulding upon fishing industries and tourism, to rebuild the
nation and GDP. The current generation may suffer hunger pangs - such as no more caviar or foie gras, but bread and butter is still avaliable. A 12
room mansion is roomy, but a 1 bedroom apartment is still a shelter.
I guess....it is only weak human nature to desire for the comfort of delusions than to stare in pain at truths and realities, and do something
constructive about it......