The Icelandic Success Story

Iceland SC The Icelandic Success Story

The Icelandic Success Story

Emotionally, I love Iceland’s financial policies since the crash of 2008:

 The Icelandic Success Story

Iceland went after the people who caused the crisis — the bankers who created and sold the junk products — and tried to shield the general population.

But what Iceland did is not just emotionally satisfying. Iceland is recovering, while the rest of the Western world — which bailed out the bankers and left the general population to pay for the bankers’ excess — is not.

Bloomberg reports:

Few countries blew up more spectacularly than Iceland in the 2008 financial crisis. The local stock market plunged 90 percent; unemployment rose ninefold; inflation shot to more than 18 percent; the country’s biggest banks all failed.

This was no post-Lehman Brothers recession: It was a depression. 

 

Since then, Iceland has turned in a pretty impressive performance. It has repaid International Monetary Fund rescue loans ahead of schedule. Growth this year will be about 2.5 percent, better than most developed economies. Unemployment has fallen by half. In February, Fitch Ratings restored the country’s investment-grade status, approvingly citing its “unorthodox crisis policy response.”

So what exactly did Iceland do?

Read More at zerohedge.com . By John Aziz of Aziznomics.

Photo Credit: bsmethers (Creative Commons)

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Comments

  1. Al Metcalf says:

    When stupid fiscal policy is rewarded — Guess What? You get more of the same…….

    When you bail out fools with other people's money — you get the same investments again. The Fed is buying 40 Billion per month in bad mortgages and is now also buying Govt Bonds again. Here comes another balloon, are you ready???

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