Iceland Jailed Bankers and Rejected Austerity—and It’s Been a Success

UK and the PIGS states (Portugal, Italy, Greece, Spain) should follow Icelands example.

sentinelblog

From TruthDig, by Roisin Davis, Jun 2015

Instead of imposing devastating austerity measures and bailing out its banks, Iceland let its banks go bust and focused on social welfare policies. It has now repaid 85 percent of U.K. claims, and the Icelandic finance minister announced recently that all will be settled by the end of the year.

“The theory that you have to bail out banks is a theory that you allow bankers enjoy for their own profit, their success, and then let ordinary people bear their failure through taxes and austerity. People in enlightened democracies are not going to accept that in the long run.” (Photo: Sveinn Joelsson/flickr/cc)

When the global economic crisis hit in 2008, Iceland suffered terribly—perhaps more than any other country. The savings of 50,000 people were wiped out, plunging Icelanders into debt and placing 25 percent of its homeowners in mortgage default.

Now…

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