How did Iceland’s economy recover?

this is interesting.

But during the crisis, the country did many things different from its European counterparts. It let its three largest banks fail, instead of bailing them out. It ensured that domestic depositors got their money back and gave debt relief to struggling homeowners and to businesses facing bankruptcy.

The article notes Iceland did have some advantages many larger countries don’t enjoy, namely its relatively few government debts, but the article also notes that Iceland’s a strong social safety net was also an advantage for the country.

While I’m obviously not an economist, providing real relief to homeowners who are struggling with underwater mortgages or a lack of ability to pay their mortgages due to unforeseen circumstances (job loss, etc.) seems like a common-sense solution for helping jump start our economy.

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2 thoughts on “How did Iceland’s economy recover?

  1. Sure. all economists not tied to the oil based establishment say that the main current economic problem is a lack of demand. Not overspending.

    The Republican cut solution is like 18th century medicine, where sick people were bled out of their illnesses. Most died.

  2. I read the article in the print and can’t put my hands on it now…but it seems to me it included the fact that a prime minister was indicted for malfeasance and that over 100 others were under investigation. Far different that here in the US where we bailed out the banks and left everyone in their jobs without penalty…hmmm!

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