Guess Who’s Emerging From the Crisis?
Iceland, of course. Kitchen-sinked and cleaned-up, the Icelandic central bank has just decided to push up rates by 25 basis points to combat signs of inflation amidst “robust” domestic demand.
From Statistics Iceland:
GDP is still below previous peak, but I think one could argue, much more so than in say America, that a significant part of that peak involved a Ponzi financial sector that isn’t coming back.
I think I was one of the first outsiders to notice that Iceland’s heterodoxy was yielding a surprisingly not-so-terrible post-crisis outcome.
And yes, the recovery is better than Estonia, and much better than Latvia.
You neglect to mention that Iceland successfully told the bankers to stuff themselves.
If we had let the banks fail and suffered through the likely severe but short repercussions, we'd be on the mend now too.
The financial system would have imploded, yes. But it could have been rebuilt rapidly with shareholders taking most of the blow and bondholders (including pensions) taking a significant hit. Everyone would have suffered a bit, but the most wealthy among us would have taken it on the chin (rightfully so).
Too bad both Dems and Repubs are owned by the bankers.