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View Diary: Don't Cry for Greece, Argentina (87 comments)

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  •  Icland is another example of how... (2+ / 0-)
    Recommended by:
    Shockwave, Nailbanger

    saying "no" to banks and protecting the taxpayers over banks eventually results in recover, while accepting the "save the banks first" mentality doesn't. The details of how that worked out are a little different but the concept is the same.

    De air is de air. What can be done?

    by TPau on Thu Nov 17, 2011 at 02:22:40 PM PST

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    •  Iceland is in horrible shape (1+ / 0-)
      Recommended by:
      Pozzo

      I generally agree with the thrust of this diary that default is a far superior option to others in many circumstances. However, Iceland is still in awful shape compared to where they were. It's going to be a long way back for them.

      (-5.50,-6.67): Left Libertarian
      Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

      by Sparhawk on Thu Nov 17, 2011 at 07:31:56 PM PST

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      •  The lesser of two evils... (3+ / 0-)

        Remember, this crisis only occurred in 2008-2009. They were in terrible shape (bankrupt) before at the time of the crisis. If they had taken austerity, their economy would have stagnated. Instead they are at 2.5% growth of GDP. Not robust but increasing. Better than what can be said about many of the countries that chose to bail out their banks instead of their people.

        There is no magic wand that will find a way out of this without any pain for Iceland or Greece. Given the options, though, Argentina and Iceland took the better of the two roads. In both cases what the countries did does appear to have worked.

        Austerity, on the other hand, has a terrible track record. It actually worsens the economy for the countries that have tried it. In fact, I am at a loss to think of one country among the dozens that have had it imposed on them, where it has actually worked.

        De air is de air. What can be done?

        by TPau on Fri Nov 18, 2011 at 12:28:57 AM PST

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      •  and their debt issues with foreign creditors (0+ / 0-)

        are far from resolved.

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