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View Full Version : Icelanders Blaming The Left For Economic Collapse, Can't Be!



Franco
04-07-2010, 07:00 PM
http://news.yahoo.com/s/afp/20100407/lf_afp/icelandeconomysocialimmigration_20100407153600

We can learn from this lesson.

Buzz
04-07-2010, 07:13 PM
I hate to say it, but you need to work on your reading comprehension, it is severely handicapped by your ideological filter. Here is a quote from the article.



"I'm so angry about this government," Bjoernsdottir said.
Iceland's first ever left-wing government came to power last year after the previous right-wing administration collapsed following a wave of protests blaming it for the state of the economy.
But the current government is now under fire over a deal to pay out massive compensation to Britain and the Netherlands for costs incurred following the fall of the online bank Icesave in October 2008.
Iceland has agreed to pay out 3.9 billion euros (5.3 billion dollars) to compensate for money the two countries paid out to 340,000 of their citizens hit by the bank's collapse.
"I had great hopes when the left-wing government was elected, that they would do something against corruption and the abusive loans, but all they do is talk about Icesave," Einarsson said.
In a March 6 referendum, more than 93 percent of Icelandic voters rejected a deal to repay Britain and the Netherlands at a high interest rate. Reykjavik has since said it will try to secure a more favourable agreement.
Bjoernsdottir was among those who voted down the deal -- and says the debacle strengthened her determination to leave Iceland.
"I don't want my daughter to have to pay for this," she said. "I just have such a bad feeling about what's happening here."

Seems like they are unhappy with the left for not doing enough to clean up the mess left by the previous government.

YardleyLabs
04-07-2010, 07:22 PM
http://news.yahoo.com/s/afp/20100407/lf_afp/icelandeconomysocialimmigration_20100407153600

We can learn from this lesson.
A completely unregulated banking system operating like a Ponzi scheme flourishes with the support of a friendly government that is basking in all the wealth derived from deposits coming primarily from other countries and decorated with rosie ratings from all the major agencies.

The scheme collapses. Currency exchange rates tumble bankrupting all three banks overnight. Depositors in other countries are left holding the bag. The UK and the Netherlands, whose citizens were the hardest hit, demand compensation and threaten massive economic retaliation if their demands are not met.

The conservative government which was in power throughout the creation of this problem, and throughout the collapse, is ousted. While government debt prior to the collapse was very modest, consumer debt was large even by US standards. Almost all consumer debt was denominated in other currencies. Banks collapse, currency collapses, economy collapses and may never recover. The risks of a laissez faire financial system will never be managed rationally without public oversight. The incentives for the crooks are simply too great.