The Icelandic Model of Handling Debt Crises: Make the Banks Fail and the Creditors Pay

Via Scoop.itDemand Transformation

Iceland’s reactions to its banking crisis offers lessons both for Greece and Occupy Wall Street protesters.   Iceland, in 2009, did what Greece would like to do now: it let its banks fail, and told their creditors to take a hike.   Two years on, Iceland’s economy is recovering, while Greece and Ireland and other euro-zone members struggle with huge taxpayer-funded bank bailouts and austerity measures that will probably fail to create jobs.
Via www.miller-mccune.com

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1 comment to The Icelandic Model of Handling Debt Crises: Make the Banks Fail and the Creditors Pay

  • Hey There Blog,
    Interesting Post, As the economic downturn has progressed, credit repair companies (as well as credit repair scams) have proliferated. Given that the credit information industry is a multi-billion dollar annual business, it has become more important that you understand the laws that protect you in your transactions with corporate interests.
    Regards
    In America: governments, businesses, individuals are now buried under a mountain of debt. A mountain of debt that will never be repaid.

    Who will borrow when they can’t make the payments on the debt that they have already? The math alone calls for a system reset, a debt jubilee.

    Investors are already losing… in a rigged monetary casino that rewards usury, speculation, and currency manipulation while looting main street.

    There is a moral principle that debts should be honored. That is, debts between businesses that buy and sell real products, not bundled ponzi schemes, debts between individuals, between friends and businesses that know each other to be rational and moral, debts based on investments where there is a rational expectation of return.

    There is also a moral principle that unjust debts should be cancelled, and usury legislated against. Debts that are ‘odious’, debts based on fraud, debts to dictators, debts arranged by oligarchs without the consent of the general population (the 99 percent who have been left out of the equation), debts based upon compound interest upon compound interest, that should have been written off long ago, the debts need to be cancelled in a general jubilee. Think outside the box. It’s time for a jubilee.

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