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Title: Icelandic Anger Brings Debt Forgiveness
Source:
Bloomberg
URL Source: http://www.bloomberg.com/news/2012- ... est-crisis-recovery-story.html
Published: Feb 19, 2012
Author: Omar R. Valdimarsson
Post Date: 2012-02-20 10:51:21 by lucysmom
Keywords: None
Views: 1838
Comments: 6
Icelanders who pelted parliament with rocks in 2009 demanding their leaders and bankers answer for the country’s economic and financial collapse are reaping the benefits of their anger. Since the end of 2008, the island’s banks have forgiven loans equivalent to 13 percent of gross domestic product, easing the debt burdens of more than a quarter of the population, according to a report published this month by the Icelandic Financial Services Association. “You could safely say that Iceland holds the world record in household debt relief,” said Lars Christensen, chief emerging markets economist at Danske Bank A/S in Copenhagen. “Iceland followed the textbook example of what is required in a crisis. Any economist would agree with that.” The island’s steps to resurrect itself since 2008, when its banks defaulted on $85 billion, are proving effective. Iceland’s economy will this year outgrow the euro area and the developed world on average, the Organization for Economic Cooperation and Development estimates. It costs about the same to insure against an Icelandic default as it does to guard against a credit event in Belgium. Most polls now show Icelanders don’t want to join the European Union, where the debt crisis is in its third year. 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. On top of that, a Supreme Court ruling in June 2010 found loans indexed to foreign currencies were illegal
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#1. To: A K A Stone, Fred Mertz, Godwinson, go65, war, no gnu taxes, Skip Intro, ferret mike, jwpegler, brian s, mininggold, mcgowanjm (#0)
ping
Anyone claiming to be an expert is selling something. I brandish my ignorance like a crucifix at vampires. Aaron Bady
A year of Jubilee? Maybe that should be built into our system. All debts forgiven every 40 years.
They rejected the O'bungler model of borrow from China, spend foolishly, and print money to give to the banks. They followed Ron Paul's advise to liquidate the debt, and all is well. Dump Oilbomber, elect Ron Paul, and the US economy will recover too.
Obama's watch stopped on 24 May 2008, but he's been too busy smoking crack to notice.
Debts were forgiven in 7 year intervals; jubilee went beyond that freeing slaves, and returning lost property to it's original owner.
Anyone claiming to be an expert is selling something. I brandish my ignorance like a crucifix at vampires. Aaron Bady
So then Ron Paul is the Messiah who will save you from corporate lobbyists and their Congressional lackeys?
Anyone claiming to be an expert is selling something. I brandish my ignorance like a crucifix at vampires. Aaron Bady
Yes, he's the antidote to Obongo's hate-America, corporate-crony Marxism, poison.
Obama's watch stopped on 24 May 2008, but he's been too busy smoking crack to notice.
Iceland’s approach to dealing with the meltdown has put the needs of its population ahead of the markets at every turn.
#2. To: lucysmom (#1)
#3. To: lucysmom, *Ron Paul for President* (#0)
its banks defaulted on $85 billion
"We (government) need to do a lot less, a lot sooner" ~Ron Paul
#4. To: A K A Stone (#2)
A year of Jubilee? Maybe that should be built into our system. All debts forgiven every 40 years.
#5. To: hondo68 (#3)
Dump Oilbomber, elect Ron Paul, and the US economy will recover too.
#6. To: lucysmom, *Liberal Rehab Staff* (#5)
Ron Paul... will save you from corporate lobbyists and their Congressional lackeys?
"We (government) need to do a lot less, a lot sooner" ~Ron Paul
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