Iceland exits recession

Started by CrackSmokeRepublican, December 08, 2010, 10:29:25 PM

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CrackSmokeRepublican

Iceland exits recession

Decision to force bondholders to pay for banking system's collapse appears to pay off as economy grows 1.2% in third quarter
 :clap:

    * Phillip Inman
    * guardian.co.uk, Tuesday 7 December 2010 20.18 GMT   
    * Article history

QuoteProfessor Paul Krugman Nobel prize winner Paul Krugman has repeatedly called on Ireland, Greece and Portugal to consider leaving the euro area and defaulting on debts.
(typical Jew...)

Iceland's decision two years ago to force bondholders to pay for the banking system's collapse appeared to pay off after official figures showed the country exited recession in the third quarter.

The Icelandic economy, which contracted for seven consecutive quarters until the summer, grew by 1.2% in the three months to the end of September.

Iceland famously agreed in a referendum to reject a scheme to repay most of its debts that were once worth 11 times its total national income.

In contrast to Ireland, Iceland's taxpayers refused to foot the bill for the debts accumulated by the banking sector. Bondholders were told to accept dramatic reductions in the value of repayments on bank debt after the sector borrowed beyond its means to fund ambitious investments abroad.

The return to growth is likely to put pressure on Irish politicians to explain why Dublin rejected a more radical restructuring of its debts and a departure from the eurozone.

Iceland's currency has fallen by around a quarter, helping its exports.

Economists on the right and left have recommended country deep in debt restructure repayments with bondholders, in effect writing off much of the debt.

Nobel prize winner Paul Krugman (pictured) has repeatedly called on Ireland, Greece and Portugal to consider leaving the euro area and defaulting on debts.

Iceland's recession has proved less severe and shorter than many analysts and the International Monetary Fund had feared.

Iceland's OMX share index is up 17% this year, the third-biggest gain in Europe after Denmark and Sweden, though it remains, at 575, well below its peak of 7500.

Last year Iceland's president Olafur R Grímsson said: "The difference is that in Iceland we allowed the banks to fail. These were private banks and we didn't pump money into them in order to keep them going; the state did not shoulder the responsibility of the failed private banks."

http://www.guardian.co.uk/business/2010 ... rd-quarter
After the Revolution of 1905, the Czar had prudently prepared for further outbreaks by transferring some $400 million in cash to the New York banks, Chase, National City, Guaranty Trust, J.P.Morgan Co., and Hanover Trust. In 1914, these same banks bought the controlling number of shares in the newly organized Federal Reserve Bank of New York, paying for the stock with the Czar\'s sequestered funds. In November 1917,  Red Guards drove a truck to the Imperial Bank and removed the Romanoff gold and jewels. The gold was later shipped directly to Kuhn, Loeb Co. in New York.-- Curse of Canaan

Panoptimist

The Orthodox Nationalist [11/18/10] - Berdayev and Dostoevsky; Modernism and Materialism; The critique of the bourgeois [Must Listen]
"[W]ithin himself / The danger lies, yet lies within his power]PL[/i] Book IX, ln. 349-356.