Iceland Jails Bankers, Erases Citizensí Debt, Recovers Strongly
For all of you who are pessimistic about the chances of real government reform, take a look at what the great citizens of Iceland have managed to accomplish.
In Iceland, the people have made the government resign, the primary banks have been nationalized and it was decided not to pay the debt that these created with Great Britain and Holland due to their bad financial politics, and a public assembly has been created to rewrite the constitution.
And all of this has been done in a peaceful way. A whole revolution against the powers that have created the current crisis.
This is why there hasnít been any publicity during the last two years: What would happen if the rest of the EU citizens took this as an example? What would happen if the US citizens took this as an example?
This is a summary of the facts:
2008. The main bank of the country is nationalized. The Krona, the currency of Iceland devaluates and the stock market stops. The country is in bankruptcy
Iceland Forgives Mortgage Debt for the Population
Posted by JacobSloan on July 19, 2012
Seriously, the most advanced place on Earth. Bloomberg writes:
Icelanders who pelted parliament with rocks in 2009 demanding their leaders and bankers answer for the countryís economic and financial collapse are reaping the benefits of their anger.
Since the end of 2008, the islandís banks have forgiven loans equivalent to 13 percent of gross domestic product, easing the debt burdens of more than a quarter of the population.
The islandís steps to resurrect itself since 2008, when its banks defaulted on $85 billion, are proving effective. Icelandís economy will this year outgrow the euro area and the developed world on average, the Organization for Economic Cooperation and Development estimates.