Icelands brought down by deregulation

Discussion in 'Current Events' started by Truthmatters, Jan 28, 2009.

  1. Truthmatters
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    Iceland - Wikipedia, the free encyclopedia

    The had State owned banks and in 2000 they thought they would join the trend of private banks with deregulation as a gudeline for successs.

    In less than a decade this stable wealthy country is bankrupt.


    Deregulation killed them.
     
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  2. dilloduck
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    dilloduck Diamond Member

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    poor Iceland
     
  3. Truthmatters
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    Iceland is especially hard hit by the ongoing 2008 economic crisis, because the debts of its banks are around six times its annual gross domestic product of €14 billion ($19 billion).[10][38] In October 2008, the Icelandic parliament passed emergency legislation to minimize the impact of the financial crisis. The Financial Supervisoral Authority of Iceland has used permission, granted by the emergency legislation, to take over the three largest commercial banks of Iceland, Glitnir, Landsbanki and Kaupthing.[39] Icelandic officials, including central bank governor Davíð Oddsson, have stated that domestic operations of the banks will be separated from foreign operations and that the state does not intend to take over any of the banks' foreign debts or assets. The Icelandic economic crisis has been a matter of great concern in international media.

    On 28 October 2008, the Icelandic government raised interest rates to 18%, a move which was forced in part by the terms of acquiring a loan from the IMF. After the rate hike, trading on the Icelandic króna finally resumed on the open market, with valuation at around 250 ISK per Euro, less than one-third the value of the 1:70 exchange rate during most of 2008, and a significant drop from the 1:150 exchange ratio of the week before. Iceland has appealed to Nordic countries for an additional €4 billion in aid to avert the continuing crisis.[40]

    On 26 January 2009, the coalition government collapsed due to the public dissent over the financial crisis.
     
  4. Truthmatters
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    2008–2009 Icelandic financial crisis - Wikipedia, the free encyclopedia


    In 2001, banks were deregulated in Iceland.[105] This set the stage for banks to upload debts when foreign companies were accumulated.[105] The crisis unfolded when banks became unable to refinance their debts. It is estimated that the three major banks hold foreign debt in excess of €50 billion,[5] or about €160,000 per Icelandic resident, compared with Iceland's gross domestic product of €8.5 billion.[6][106] As early as March 2008, the cost of private deposit insurance for deposits in Landsbanki and Kaupthing was already far higher (6–8½ percent of the sum deposited) than for other European banks.[107] The króna, which was ranked by The Economist in early 2007 as the most overvalued currency in the world (based on the Big Mac Index),[108] has further suffered from the effects of carry trading.[109]
     
  5. dilloduck
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    Like you really give a shit about Iceland--give us a break.
     
  6. xsited1
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    You got it backwards. This is just another example of the government looting the people. In the US, the Federal Reserve has enslaved the people by supporting the continuation of an economic system of perpetual debt (the Keynesian economic theory that debt equals wealth) established by the Fed. This system has made us slaves to the system. Our federal and local governments owe so much, and this, coupled with the personal consumer debt, makes us slaves to pay off debts that will never be paid off (due precisely to Federal Reserve Bank policy). The same thing is happening in Iceland.

    And guess how Obama is going to save us? By using the same failed Keynesian economic theory that brought us here in the first place. But don't worry. When it fails, the Democrats will simply blame Bush (which is fine with me). And when market forces eventually take over and truly save America and the world, the Democrats will claim their failed policies saved us. Ignorance is truly bliss. Of course, this can't continue forever. Eventually America will come crashing down, but by that time we'll be fully controlled by the government so it won't matter. You might want to read 1984 again to get a glimpse of the future.
     
  7. Red Dawn
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    Those god damn Icelandic socialists just didn't know how to do privitazation the right way.

    They needed to dismantle universal healthcare, privitize the roads, and privitize all public and social services if they wanted to unleash the magic of free markets.
     
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  8. Truthmatters
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    Here is yet one more example in history where Deregulation caused a massive problem for a state.

    There is no example of any "magic market" unfettered and making a state strong and healthy.

    Please use common sense when you chose to back economic policy.

    No more la la land ideas please.
     
  9. dilloduck
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    ok--I'll pass the word on.
     
  10. xsited1
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    I've got to give you a troll rating for this thread of 9/10. Your arguments are convincing to the uninformed and you are certainly passionate with your posts. Yesterday a troll got a 10/10 for an awesome troll post. At the rate you're going, you should become a Super Troll soon. Congratulations. :clap2:
     

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