Iceland Says No … The island nation may serve as an example for those who want capitalists to operate at their own risk. In a national referendum Saturday, Icelanders, for the second time, voted against a government proposal to pay the big losses of some of their bankers and their foreign customers, with 60% voting “No” and 40% in favor. For those of us who welcome capitalists, but want them to operate at their own risk, this hopefully sets an example for the rest of Europe. – Wall Street Journal

Dominant Social Theme: The Icelanders are at it again, irresponsible and unwilling to take up their burden. The wrath of the modern world shall surely be visited upon them. 

Free-Market Analysis: Yes, reluctantly, the Dutch and British must sue. If the verdict is not appropriately punitive and Iceland’s hardy fisherman stock does not learn its lesson in an illustrative fashion, then perhaps the Pentagon’s legendary, doomsday weather weapon, HAARP, shall be brought to bear; Iceland to be wiped, sadly, from the map by fire and ice. Over time, surely, its name shall be expunged from the history books; all mention of its miserable banks shall be redacted as well. What Iceland? 

For those of us who believe that the world and especially the West is headed in the wrong direction with its endless emphasis on centralization and consolidation leading inevitably to a “one-world order,” the saga of little Iceland versus the big banks is actually an inspiring tale. This little nation of 300,000 has twice now voted against accepting a nearly US$7 billion national debt – accrued by several reckless Icelandic financial institutions – that would make every citizen responsible for their banks’ actions and the equally rash actions of the Dutch and British governments.

The problem is aptly summed up by a splendid little article in the Wall Street Journal (excerpted above) by Hannes H. Gissurarson out of Reykjavik, Iceland. He explains the evolution of the contretemps as follows:

How Icelandic taxpayers got stuck with this bailout bill is a strange saga. When the international financial crisis hit bottom in the fall of 2008, it became clear that the Icelandic Insurance Fund for Depositors could not cover all the liabilities of the foreign branches of the private Icelandic bank Landsbanki. In order to avoid a general run on their own banks, the British and the Dutch governments decided to reimburse depositors, for not only the principal, but also the interest due, in Landsbanki branches in their countries, up to a certain level.

full article link:http://www.thedailybell.com/2037/Little-Iceland-Panics-Big-Banks.html

Comment:

Whatever you say ,morality in on the side of Iceland a corrupt Financial system has tried to enslave the ordinary people with private gambling debts and the people have spoken and rightly so!

If only we in the so called Irish republic had the same balls and get up and tell the international bankers and their cronies and lackeys here in the Irish government where to go .

Well done Iceland !