Skip to main content

View Diary: If the Euro fails. (282 comments)

Comment Preferences

  •  Iceland did exactly what the IMF asked of them. (3+ / 0-)
    Recommended by:
    Escamillo, Cliss, Odysseus

    Including austerity. Which is why the IMF is touting them.  And the two entities trying to extract money from Iceland were the British and Dutch governments, not banks.

    Also, Iceland is so far down in the hole, it'd take a miracle not to have proportionally fast growth.  And their usual unemployment rate is 1-2%, so the current level is extraordinarily bad from a historical perspective.

    •  and yet relative to the rest of the countries (4+ / 0-)
      Recommended by:
      DRo, Odysseus, Losty, Creosote

      that have gotten thrashed recently - in particular the baltics, but also greece and spain - iceland is doing far better.

      •  By following the IMF plan. (0+ / 0-)

        And by putting a good chunk of a year's worth of GDP into their banks.  And again, they went down in the hole before these other countries and are so deep in it that it'd be hard not to come out of it.  Plus, to reiterate, a lot of the comparisons are simply things that Iceland's always been stronger in, like unemployment rate and social services.

        •  and yet all the other ones, that didn't stick it (0+ / 0-)

          to the investors, fell just as brutally hard as iceland, but have not bounced back. the only one with any economic recovery to speak of has been iceland.

          •  Many issues with this. (0+ / 0-)

            1) No, they haven't.  Name another country that had consumer prices go up ~40% and the principal on private homes go up so much (formerly ~100%, now more like ~40% or so) at the same time as a 15% across-the-board service cut, higher taxes, and an unemployment spike.  Note that I said principle on homes, not interest.  Iceland's strange home loan structure amplified the currency collapse's impact on normal people.

            2) Iceland has not "bounced back" by any means.  Please stop saying that.  It has a good long-term prognosis.  It's still just as deep in the hole.  Some of the austerity measures haven't even taken effect yet.

            3) Iceland fell earlier than all of the others except the US (and went way deeper than the US); their bank collapse was triggered immediately from the US bank collapses.  Once again, to fall that deep, that long ago, it'd be a bloody miracle for them not to be recovering by now.

            4) None of the other countries had a private debt problem involving private debt many times the size of the nation's GDP.  Other countries are dealing with national debt problems, and not of the same scale compared to GDP.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site