Icelandic citizens say no to paying off debts from private bankers.

[Thor]

So the coles notes, the new Icelandic government elected after the collapse tasked with reorganizing and dealing with corruption that helped lead to the financial collapse of 3 banks; has put a bill forth to have the people of Iceland pay back to UK and Netherlands which covered its citizens losses from the bank defaults.

Whats neat about this is that our President which is a symbolic position, much like our Governor General, has to sign off all bills into law, its almost always a formality.

However he was given a petition signed by 25% of the electorate of Iceland to stop this bill from passing, which he did.

Anyhow, its a very unique situation, its a big FU to the IMF, the EU and of course the UK especially which used a terrorism law to declare Iceland a terrorist nation to seize assest of Iceland in the UK, ultimately causing the run on the Icelandic Krona which made a bad situation infinitely worse.

Here's a article discussing these news, for those of you interested:

http://www.huffingtonpost.com/sheldo..._b_412186.html

http://network.nationalpost.com/np/b...rebellion.aspx

[Thor]

Also an article comparing the damage done by the UK with enacting the terrorism law, suggesting it did to Iceland what the treaty of Versailles did at the end of WWI.


http://www.telegraph.co.uk/finance/n...ersailles.html

A letter from Ingibjorg Solrun Gisladottir, Iceland's then foreign minister, addressed to the UK several weeks after the crash highlights the disastrous impact on the Icelandic economy.

"Total possible liabilities, if pushed to their maximum, could impose on Iceland reparations on a similar economic scale to the Treaty of Versailles," the letter dated October 23 said.

Another major objection was the Anti-Terrorism, Crime and Security Act used by the Treasury to freeze the assets, putting Iceland on a list of suspect organisations.

"It makes no sense to see an Icelandic company listed next to the Al-Qaeda and the Taleban on the Treasury website," she wrote.

[Iowa_Flames_Fan]

It's a complicated situation, and I am the first to admit that my understanding of the implications here is pretty imperfect. But aren't they faced with a kind of Hobson's choice here-- between compromising principle and even deeper financial crisis?

Also as I understand it, this doesn't end the matter. Olafur Ragnar's veto triggers a referendum, doesn't it?

[Thor]

The expectation is the referendum would soundly be defeated, so yes Iceland could be digging a deeper hole.

Right know they are just fed up with banks, bankers, governments and especially piling on the failures of private business on the people of a country.

[Sylvanfan]

Sounds like they also don't trust the politicians who allowed this mess to happen in the first place either. On one hand I can't blame them for being skeptical and having the entire population bear the burden of some over zealous financiers. But if the IMF is going to cut them off, thats a rather isolated place to basically be forced into self sufficiency.

[FlamesAddiction]

They have no one to balme but themselves. They went crazy like drunken sailors.

If I was an average Icelander, I would not want to give them one penny.

[Thor]

Originally Posted by Sylvanfan

Sounds like they also don't trust the politicians who allowed this mess to happen in the first place either. On one hand I can't blame them for being skeptical and having the entire population bear the burden of some over zealous financiers. But if the IMF is going to cut them off, thats a rather isolated place to basically be forced into self sufficiency.

At this point the Icelanders are willing to stand on their own and there is a lot of solidarity amongst the nordic nations about doing what's right in this situation.

So there is risk to this and it does worry me, but the ability of Iceland to get through this I have little doubt of.

[Flames in 07]

Originally Posted by Thor

At this point the Icelanders are willing to stand on their own and there is a lot of solidarity amongst the nordic nations about doing what's right in this situation.

So there is risk to this and it does worry me, but the ability of Iceland to get through this I have little doubt of.

Well, stand on their own with other people's money.

I don't understand the situation very well, but 'doing what's right' and ignoring your debts don't really line up very well.

[Thor]

Originally Posted by Flames in 07

Well, stand on their own with other people's money.

I don't understand the situation very well, but 'doing what's right' and ignoring your debts don't really line up very well.

Well its not the debt of the citizen, its the debt of private banks who ran a mock with foreign deposits which were attracted to invest because of those foreign people's greed looking for bank accounts with exceedingly high rates.

The fact that there was about 25 individuals involved with the vast majority of this gung ho investing at the banks, and that the regulators at the government were ignoring their duty for the fact they were loving the high life and money flowing like crazy into Iceland.

This is NOT the fault of the average citizen, and I can fully understand their anger in paying off those debts which had almost nothing to do with them.

Now, where does this leave the nation, IMF and the world bank like to hold countries ransom.

Hopefully Iceland is not one of their victims, unlike many 3rd world nations.

[Svartsengi]

Stand firm Icelanders. Don't cave in under threats.

[jammies]

Pass a law retro-actively limiting foreign depositor guarantees to something like 10 000 Euro per depositor. Pay that out. The rest of the money - too bad.

Iceland is a sovereign nation, they don't need to kowtow to the IMF or the EU. Is it really to their benefit to agree to such a massive transfer of wealth out of the country, no matter what "benefits" they will supposedly accrue from doing so? Give it 10 years and it will be business as usual without giving in anyway; money has a short memory.

[Locke]

It seems as though lately one of the fundamental concepts of the open-market economy has fallen by the wayside. Is this another indication that 'moral hazard' is indeed, truly dead?

[Pastiche]

I hope Icelanders aren't hoping to finance any government spending with Icelandic bonds.

[badnarik]

Moral hazard is thriving--it killed morals.

[Komskies]

I thought Iceland was covered with ice.
No, it's very green!
I thought GREENLAND was green!
Greenland is covered with ice, and Iceland is very nice!

[Locke]

Originally Posted by badnarik

Moral hazard is thriving--it killed morals.

But the actual hazard is gone, everytime a company screws up its expected to be bailed out and that expectation is warranted, as we've seen the bailouts over and over.

Government spending to save corporations is astronomical, at least the Icelanders understand where that money comes from, Americans seem to feel that the money comes from magic carebear-land where inflation doesnt exist and debts never have to be repaid.

Even so, a 25% electorate petition isnt convincing me that the enormity of the situation is being grasped by a majority of the population.

[badnarik]

Originally Posted by Locke

But the actual hazard is gone, everytime a company screws up its expected to be bailed out and that expectation is warranted, as we've seen the bailouts over and over.

Government spending to save corporations is astronomical, at least the Icelanders understand where that money comes from, Americans seem to feel that the money comes from magic carebear-land where inflation doesnt exist and debts never have to be repaid.

Even so, a 25% electorate petition isnt convincing me that the enormity of the situation is being grasped by a majority of the population.

Yes, I agree the actual hazard is gone. But bailouts are a moral hazard. Scoundrels with no morals take advantage of this.

[Locke]

Originally Posted by badnarik

Yes, I agree the actual hazard is gone. But bailouts are a moral hazard. Scoundrels with no morals take advantage of this.

Ah yes, well, raise a "Brennivin" to the demise of consequences!!

[Flashpoint]

I wanna be too big to fail. If corporations are people (and they indeed are), then I want the same rights extended to me that are extended to them.

It's an equality issue just like any other.

[Iowa_Flames_Fan]

Originally Posted by Locke

Ah yes, well, raise a "Brennivin" to the demise of consequences!!

I just may do that. I'm sure I have some around here somewhere.

Mind you, no-one should actually drink that stuff. Use it to clean your car engine? Sure, whatever floats your boat. Drink it? Not me, hombre. It tastes like caraway seeds mixed with wood alcohol and death dipped in ass.