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Originally Posted by mykalberta
I would agree in so much as any private business should be able to declare bankruptcy and the positives and negatives that come along with that.
I am still unsure of how the Icelandic system was setup. It would appear that many in England were heavily invested in Icelandic banks and believe the government "owes" them their money.
Someone correct me if I am wrong but my understanding in Canada is that it is possible that any of the private banks if so need be could declare bankruptcy and CDIC is there to protect a portions of the populations money if that were to happen.
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In the Icelandic case private banks, not the privatized central bank went belly up, namely Icesave which like Canada guaranteed deposits of 10% or whatever it was. This was paid back, or is at least mostly paid at this point.
The UK government used its terrorism laws, seized Icelandic assets and helped speed the destruction of our economy. They wanted more than the 10%, and demanded that the country pay for it, which is utter nonsense since no way in hell would any other country do that. They simply tried to bully their way, and thankfully the EU courts supported our position and they lost.