In America, no financial crime is actually acrime if you make enough money on it.
In general, our "alt-legislators" are careful to dismantle all regulations and laws ahead of time so that when the money is stolen, they can honestly say "it doesn't look like any laws were broken.
Only in our great country can you crash the world economy and get a bonus for it !!
In general, our "alt-legislators" are careful to dismantle all regulations and laws ahead of time so that when the money is stolen, they can honestly say "it doesn't look like any laws were broken.
Only in our great country can you crash the world economy and get a bonus for it !!
5
"The authorities forced creditors to take some losses, and among other things, the top executives of one of the biggest failed lenders, Kaupthing Bank, were sentenced to prison".
Creditors taking a hit, the imprisonment of executives plus capital controls to prevent overseas creditors withdrawing money is likely to have done far more to prevent another financial collapse than Dodd-Frank and its hundreds of pages.
Iceland's approach makes future decision-makers think hard about risk when it is they, not the taxpayer who will suffer most.
Creditors taking a hit, the imprisonment of executives plus capital controls to prevent overseas creditors withdrawing money is likely to have done far more to prevent another financial collapse than Dodd-Frank and its hundreds of pages.
Iceland's approach makes future decision-makers think hard about risk when it is they, not the taxpayer who will suffer most.
3
What about real estate prices? They tend to be the motor behind bubbles.
The most crucial datum is left out of this economic information piece. What is happening to wage growth?
Is this post-financial crisis boon propelling real wage growth? after all, the tourism and hospitality sectors are not known for generating highly paid jobs.
Is this post-financial crisis boon propelling real wage growth? after all, the tourism and hospitality sectors are not known for generating highly paid jobs.
2
Hello guys...repeat after me.....2008, 2008, 2008.
If we repeat the same thing here with the demagogue Trump, as Yogi taught us it will be deja vu all over again.
If we repeat the same thing here with the demagogue Trump, as Yogi taught us it will be deja vu all over again.
2
From bubble to bubble we go and think we grow only to embrace the model of secular stagnation compressed in time.
1
It appears Icelanders are capable of learning from past mistakes. Must not be any Republicans there.
6
As an American who lived and owned a company in Iceland during the lead up and collapsed economy, I applaud Iceland making the right, prudent steps in their recovery. However, to compare them to Greece is a poor choice. Everything is different including Greek tax evasion. Iceland is a hearty, self reliant country. But they need to back away from tourism or be relegated to the Disneyland of Europe or the Monkeys at the zoo. For a proud, private people it makes me sad they are selling out their land and heritage.
13
I think you missed the point entirely - of course opinionated & political NYTimes would pick an article like yours. You missed the point because no one claimed Greece situation is an apples-to-apples situation - of course it is not. The point is, which I find surprising that you did not understand is, Greece has no financial control tools to fight their debt crises. Of course Greece faked accounts to get into the Euro, etc etc - that is not the point. After the financial crises - Greece had pretty little tools in their arsenal to fight the crises & that is directly because they used the Euro and are in the EU. To give you an example of a few; Greece cannot devalue the currency they use, since they use Euro. Greece could not also lower interest rates or use negative rates, since interest rates in the Euro area is set by the ECB. Are there are all sorts of capital controls, financial instruments available to Iceland that was simple not a choice for Greece. Financial instruments like currency swaps or options/futures on currency swaps or instruments - again, to name a few. They simply could not do all of that because they have no control of interest rates, currencies & others - So, very surprised you can come out here & ignore the constraints of being in the EU & in the Eurozone. I would advise you read up on these before making factually incorrect arguments.
1
Golly gosh, does this mean throwing predatory capitalists in jail and putting into play comprehensive regulation works for the commonweal? Darn socialists
24
Iceland put the bankers in jail.
Obama gave them more money.
Obama gave them more money.
7
Ten years ago, Iceland was the canary in the mine, or better yet it was the smoke detector tweeting an alarm deep in the basement of the financial institutions... but the buildings owners cut back so the one janitor was doubling as the doorman... but pretty much just dozing off by the loading dock.
The 2010 documentary on the financial meltdown, 'Inside Job', begins in Iceland. It's a beautifully paced, powerful films that pulls you in quickly; it should be mandatory viewing for Congress, maybe at their orientation lunch (after a reading of The Lorax).
Mankind seems to lack the ability to pass knowledge between generations; each new group of leaders is like the child that needs to touch the stove to understand what hot really means... As the world's inter-connectivity increases, the stove's temperature goes up, and these days we are all at risk of being burned...
I have an image now of President Trump wearing a toga, it's the weekend and he is down at Mar-A-Lago, Golden Fiddle in hand. Smoke is rising in the distance. Now he's playing. Now he's talking;
"Iceland. No kidding? Lots of wonderful ice there. It's simple; the ice will melt. It'll take care of itself... Look what the smoke is doing to the sunset; beautiful, really, the most beautiful...
The 2010 documentary on the financial meltdown, 'Inside Job', begins in Iceland. It's a beautifully paced, powerful films that pulls you in quickly; it should be mandatory viewing for Congress, maybe at their orientation lunch (after a reading of The Lorax).
Mankind seems to lack the ability to pass knowledge between generations; each new group of leaders is like the child that needs to touch the stove to understand what hot really means... As the world's inter-connectivity increases, the stove's temperature goes up, and these days we are all at risk of being burned...
I have an image now of President Trump wearing a toga, it's the weekend and he is down at Mar-A-Lago, Golden Fiddle in hand. Smoke is rising in the distance. Now he's playing. Now he's talking;
"Iceland. No kidding? Lots of wonderful ice there. It's simple; the ice will melt. It'll take care of itself... Look what the smoke is doing to the sunset; beautiful, really, the most beautiful...
12
I can relate to the gentleman with the small business (70) employees) who was supposed to receive the bank loan for much need cash flow and growth/
I had a small business I cofounded in 1991 in Lower Manhattan, NYC. It was a super niche market, and had been steadily growing for years.
My business partner and I had boot strapped it from the ground up into a virtual turnkey business over the course of 20+ years. We had grown to a company of approximately 25 employees, as well.
In the fall of 2007 Chase (our bank of many years) had given us a "handshake agreement" to provide us with a much needed loan (for our continuing growth) in the spring of 2008.
Enter the Great Recession. Needless to say, Chase reneged on the loan. This was in spite of the fact we had a near perfect credit rating. Dunn and Bradstreet backed us to the hilt.
I went to the Chase bank manager. He looked exactly like a (very humorous) photograph of my father, after my sister's wedding: standing alone with his empty pockets turned out of his trousers.
We were a very creative company: Landscape Design, Installation and Maintenance; focused on penthouse terraces, rooftop gardens, courtyard and backyard townhouse gardens, etc. all in Manhattan. We had done all of this with hard work, making fast critical thinking decisions, knowing when to say no (a biggie), being very smart and we never advertised, except by the best form: word of mouth.
In spite of no loan, we had our (2) best years in 2008 and 2009.
I had a small business I cofounded in 1991 in Lower Manhattan, NYC. It was a super niche market, and had been steadily growing for years.
My business partner and I had boot strapped it from the ground up into a virtual turnkey business over the course of 20+ years. We had grown to a company of approximately 25 employees, as well.
In the fall of 2007 Chase (our bank of many years) had given us a "handshake agreement" to provide us with a much needed loan (for our continuing growth) in the spring of 2008.
Enter the Great Recession. Needless to say, Chase reneged on the loan. This was in spite of the fact we had a near perfect credit rating. Dunn and Bradstreet backed us to the hilt.
I went to the Chase bank manager. He looked exactly like a (very humorous) photograph of my father, after my sister's wedding: standing alone with his empty pockets turned out of his trousers.
We were a very creative company: Landscape Design, Installation and Maintenance; focused on penthouse terraces, rooftop gardens, courtyard and backyard townhouse gardens, etc. all in Manhattan. We had done all of this with hard work, making fast critical thinking decisions, knowing when to say no (a biggie), being very smart and we never advertised, except by the best form: word of mouth.
In spite of no loan, we had our (2) best years in 2008 and 2009.
5
At least the NYTimes was humble enough to publish the success of Iceland.When the financial crisis started, Iceland & Greece economies exploded into a debt crises. One country was in the EU & uses the Euro, the other country was not.The NY times has at every opportunity extols the virtues of the EU & the Euro, going as far a to mock Brexit calling it short-sighted & a decision made out of ignorance. This article by the NYTimes proves & offers concrete proof that the NYTimes position on the EU & Euro were completely wrong. It shows that the EU serves a core elite of countries and can never respond to debt crises like the debt crises of 1998. Iceland even contemplated applying to the EU immediately after the crises, but on reflection quietly withdrew their application, so as Switzerland. All the capital control measures taken, interest rate policies Iceland took, would never have been possible had they been in the EU or using the Euro. The success story of Iceland offers concrete proof once & for all that the EU would never work & stifles growth & innovation. The British people in their wisdom also knew this and that's why they voted to exit an undemocratic, corrupt, nontransparent political state masquerading as a block, under so called "pooled-sovereignty" that no European citizen ever voted for. The wealthiest countries in Europe are not in the EU - Norway & Switzerland comes to mind & GB would join them soon. The NYTimes was wrong & still wrong about the EU & the Euro.
3
They actually sent someone to jail for the financial shenanigans that cratered their economy. There are places in the world where the Morgan Stanleys and Goldman Sachses do not hold quite as much sway.
The worry about tourism turning into a behemoth that broaches the economic ship of state is a little overblown. Tourism will not keep growing as a proportion of the economy forever. Iceland is the destination du jour, but once most travelers have visited it, tourism will level off at a sustainable pace.
The worry about tourism turning into a behemoth that broaches the economic ship of state is a little overblown. Tourism will not keep growing as a proportion of the economy forever. Iceland is the destination du jour, but once most travelers have visited it, tourism will level off at a sustainable pace.
6
As long as they have kept records fishing was the largest contributor to Iceland's GDP. Fishing, a noble and old as time art which is tied to sailing, which predates the Vikings. Now, tourism, not so noble. Driving around buses of people who take Instagram photos and ask stupid questions because they've done little to understand the country or its history and certainly cannot get it in a weekend. Tourist, who come to Iceland in their brand new hiking boots and goose down, asking where is "the best"... stomping around, bumping into themselves with no regard or respect for the local customs. Makes you want to spit the word out like a hawker. Tourism is sucking the history and noble spirit out of Iceland one tourist at a time and they know it. A sustainable pace? Don't you mean a tolerable, hold your nose and take the money, pace?
2
Increase cost to tourist , if high enough they will stop the inconvenience and let you wallow in your mistakes.
Dramatic economic growth. Record low unemployment. Double-digit wage increases. Perhaps most importantly, national pride built on a sense of unity, faith in government and trust in the system of justice. That is what Iceland's response to the bank-created economic crisis led to.
Our government's response, in contrast, was nothing less than criminal. No one went to jail. The President, the Treasury, Congress, the Justice department and the Federal Reserve did everything in their power to ensure that there would be no accountability, financial or legal, for any crimes committed. All bad bets were paid off by ordinary taxpayers.
Consequently, the banks got bigger, the gap between rich and poor got dramatically wider, economic pain in key midwestern states lingered while faith in the federal government and in the rule of law reached an all-time low. Enter the deceptive despot, channeling the people's anger toward the broken system and turning it into hatred for one another.
It is entirely reasonable to assert that if our government, led by Obama, had followed Iceland's lead, Donald Trump would not now be president. That's the price we are now paying for bailing out the banks.
Our government's response, in contrast, was nothing less than criminal. No one went to jail. The President, the Treasury, Congress, the Justice department and the Federal Reserve did everything in their power to ensure that there would be no accountability, financial or legal, for any crimes committed. All bad bets were paid off by ordinary taxpayers.
Consequently, the banks got bigger, the gap between rich and poor got dramatically wider, economic pain in key midwestern states lingered while faith in the federal government and in the rule of law reached an all-time low. Enter the deceptive despot, channeling the people's anger toward the broken system and turning it into hatred for one another.
It is entirely reasonable to assert that if our government, led by Obama, had followed Iceland's lead, Donald Trump would not now be president. That's the price we are now paying for bailing out the banks.
29
Iceland is a mostly ethnically and culturally homogeneous nation with less than half the population of San Francisco. It's relatively easy to build consensus in a place like that. I would argue that the biggest problem with current US politics is not any specific policies but the constant vacillation between major initiatives. Implementing (for example) a universal health care strategy only to have that strategy reversed a few years later when the other party gains power is not the way to run a government.
5
". . . because restrictions on the free flow of funds can cripple businesses and cause hardship for households short of cash."
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Free trade defect in a nut shell: free moving current account; captive labour markets. Labour can't arbitrage opportunity as easily as capital because labour immigration is fraught with friction. Capital is as free as air. Bottom line: Angry populism from historic levels of inequality. People are correct to be fed up.
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Free trade defect in a nut shell: free moving current account; captive labour markets. Labour can't arbitrage opportunity as easily as capital because labour immigration is fraught with friction. Capital is as free as air. Bottom line: Angry populism from historic levels of inequality. People are correct to be fed up.
6
I see the NYTimes would not publish my comments critical about them & their support for EU & its institutions in the face of Iceland success. One thread particularly coming out with liberals & liberal organization in these divisive times is that, they are totally intolerant of any alternative views from theirs. Any alternative views must be shut down - so much for freedom of speech etc, etc. Iceland success makes a mockery of their support for EU and EU institutions.
Or maybe you just forgot to hit the submit button. See, no conspiracy theory necessary.
7
Rather snarky comment , really necessary?
Some nations never learn. Just look at the USA and trump, heading right back into a moral blizzard. Just waiting for the head on impact. Again! Iceland should know better.
4
Managing success can be complex and sometimes a difficult as recovering from failure. However, given the two choices, I'll take the latter!
1
I'm thinking you mean "I'll take the former"?
2
An exceptional achievement...
3
I served in the U.S. Army and put my life on the line for the protection of the country. It turns out that my sacrifice was just to serve the wealthy interests of the country. The economic scam/bailouts of 2008 were the worst extortion of the U.S. Treasury in history. Moreover, retirement funds were savaged by the wall street actions as well.
I will taken what remains of my IRA/401K and invest it in Iceland. I trust that government far more than I trust my own. That's a sad thing to realize, but it is definitely the truth. When I think of my friends who died while serving the country, I also think of how our government has abused that trust. We deserve better.