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Thread: Iceland's recovery in comparison to Ireland and the US

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    Politics.ie Member CptSternn's Avatar
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    Default Iceland's recovery in comparison to Ireland and the US



    Top Economists: Iceland Did It Right … And Everyone Else Is Doing It Wrong - Washington's Blog

    Unlike other nations, including the U.S. and Ireland, which injected billions of dollars of capital into their financial institutions to keep them afloat, Iceland placed its biggest lenders in receivership. It chose not to protect creditors of the country’s banks, whose assets had ballooned to $209 billion, 11 times gross domestic product.

    “Iceland did the right thing … creditors, not the taxpayers, shouldered the losses of banks,” says Nobel laureate Joseph Stiglitz, an economics professor at Columbia University in New York. “Ireland’s done all the wrong things, on the other hand. That’s probably the worst model.”

    Ireland guaranteed all the liabilities of its banks when they ran into trouble and has been injecting capital — 46 billion euros ($64 billion) so far — to prop them up. That brought the country to the brink of ruin, forcing it to accept a rescue package from the European Union in December.
    It's pretty bad when economists around the globe start using your countries most recent financial decisions as the text-book wrong thing to do in a fiscal crisis.

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    Politics.ie Member Howya's Avatar
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    The one advantage Iceland had was its own currency - joining the euro closed off our options (At the time it seemed like a good idea).
    “Still paying, still to owe. Eternal woe! ” ― Paradise Lost, John Milton

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    Quote Originally Posted by Howya View Post
    The one advantage Iceland had was its own currency - joining the euro closed off our options (At the time it seemed like a good idea).
    Then why are Iceland seeking to join both the EU and the Euro now?

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    I pity Iceland, they went and saved them selves, we had Cowan and Lenihan save Eurogreedy bankers. The world looks up to us and Enda, poor Iceland, no one can name their Prime Minister.

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    Politics.ie Member CptSternn's Avatar
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    Quote Originally Posted by PlanetBertie View Post
    I pity Iceland, they went and saved them selves, we had Cowan and Lenihan save Eurogreedy bankers. The world looks up to us and Enda, poor Iceland, no one can name their Prime Minister.
    No one can name our Prime Minister either sure.


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    didn't they send someone to jail?

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    Politics.ie Member Clanrickard's Avatar
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    Quote Originally Posted by Ryan Tubbs View Post
    Then why are Iceland seeking to join both the EU and the Euro now?
    Are they? They have not lodge an application as far I am aware. Have you a link?

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    Quote Originally Posted by Clanrickard View Post
    Are they? They have not lodge an application as far I am aware. Have you a link?
    Can we lodge an application to join Iceland?

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    Politics.ie Member truthisfree's Avatar
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    Not bad at all, still not that clear though yet according to this I would love to see them make it through this and prove everyone else wrong and hopefully I will....

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    Politics.ie Member farnaby's Avatar
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    Nothing new here - it's Stiglitz and Krugman saying what they've been saying for a long time now, though perhaps in more stark terms than previously.

    Not that I disagree with them, just that there are plenty of miserable scientists out there who will continue to say Ireland's doing a great job, keep applying the thumbscrews. Nothing's going to change.

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