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View Diary: Icesave: Today Iceland Learns Whether It Gambled Right On Refusing A Repayment Deal With The British (177 comments)

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  •  Good for the EU most of all. (9+ / 0-)

    Message:  You don't have to do austerity to protect banks.  

    And it would be good for America, but America most resembles Britain in this situation.

    "To recognize error, to cut losses, to alter course, is the most repugnant option in government." Historian Barbara Tuchman

    by Publius2008 on Mon Jan 28, 2013 at 07:39:29 AM PST

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    •  But we did austerity. (17+ / 0-)

      A pretty heaping amount of it, actually, something like 30% across the board cuts.  The Icelandic economy nosedived and we took loans from the IMF and others, which we're proceeding well on paying back.

      Iceland has always honored its debts.  The problem in the case of Icesave is that this wasn't our debt.  We played by the rules and the British and Dutch were trying to bend the rules to stick us with repaying money that we didn't even really owe.

      •  That's what I remember from afar.... (1+ / 0-)
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        and what I read in Michael Lewis's "Boomerang":

        The tsunami of cheap credit that rolled across the planet between 2002 and 2008 was more than a simple financial phenomenon: it was temptation, offering entire societies the chance to reveal aspects of their characters they could not normally afford to indulge.

        Icelanders wanted to stop fishing and become investment bankers. The Greeks wanted to turn their country into a piñata stuffed with cash and allow as many citizens as possible to take a whack at it. The Germans wanted to be even more German; the Irish wanted to stop being Irish.

      •  and then they insulted you on top of it! (0+ / 0-)

        thing is, unless I'm misinterpreting here, you don't have the same crooked bankers continuing the same crooked and irresponsible practices and continuing to loot the public purse to pay for it. Therefore your austerity may not be a permanent condition. You could work your way out of it.

        That's the difference between austerity as a remedy (which I don't believe in, but that's not the point here) and austerity as an ideological excuse for allowing the richest people on earth to suck the blood out of your veins as "the new normal."

        if necessary for years; if necessary, alone

        by SouthernLiberalinMD on Tue Jan 29, 2013 at 07:31:30 AM PST

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