Thursday, November 3, 2011

The Icelandic Model of Handling Debt Crises

Iceland did something right in the credit crisis, perhaps offering lessons both for Greece and Occupy Wall Street protesters
By Michael Scott Moore, Miller-McCune

The latest euro rescue plan lurched into crisis this week after the Greek prime minister decided to put the package to a popular vote. This unexpected gesture of independence “sent tremors through Europe’s financial markets,” according to The New York Times, and “hammered” U.S. markets, “showing once again how the domestic politics of even the smallest members of the European Union can create troubles” beyond all proportion.

The panic over Greece, of course, is panic over the euro. Another European country, Iceland, took a far more radical path than did Greece, yet it went largely unnoticed. Iceland, in 2009, did what Greece would like to do now: it let its banks fail, and told their creditors to take a hike.


Two years on, Iceland’s economy is recovering, while Greece and Ireland and other euro-zone members struggle with huge taxpayer-funded bank bailouts and austerity measures that will probably fail to create jobs. “Iceland did the right thing by making sure its payment systems continued to function while creditors, not the taxpayers, shouldered the losses of banks,” Joseph Stiglitz, the Nobel Prize-winning economist, told Bloomberg. “Ireland’s done all the wrong things, on the other hand. That’s probably the worst model.”


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TARIQ ALI: The Spirit of the Age

How do the 99% compare with mass protests of the past – and can they succeed?
“A map of the world that does not include Utopia is not worth glancing at,” wrote Oscar Wilde, “for it leaves out the one country at which humanity is always landing. And when humanity lands there, it looks out, and seeing a better country, sets sail. Progress is the realisation of Utopias.”

Papandreou’s Call for a Referendum Is No Greek Tragedy: View

The country that invented drama and democracy is not disappointing the world on either front. Greek Prime Minister George Papandreou on Monday called for two high- stakes votes.


50 Ways to Leave Your Banker

He's been called a "credit terrorist," but Steven Katz says you shouldn't feel guilty about walking away from your debts.

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New Mental Health ‘Bible’ Will Lead To Almost Everyone Having A Disorder
An updated edition of a mental health bible for doctors could mean that soon no-one will be classed as normal, experts warned today.

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