|Aubrey the Malformed|
|Klaus van der Kroft|
Even though sending the guilty guys to jail is a good thing, the growth should be put into context: Iceland is a very small economy (115-120th in the world) just comming out from a severe period of negative growth, as it can be seen here.
It is common for economies to bounce back after periods of crisis and experiment sudden explosions of high growth rates. Being such a small economy and having such a tiny population, it is very likely that Iceland just managed to overcome the crisis faster than the US.
While I'm not completely intimate to the process of bailing out banks in the US, perhaps it is still early to judge the outcome.
For example, I'm from Chile, a country which experimented a very acute crisis in the early 80's, very similar to the one currently undergoing most of the developed world (although in our case specifically contained within our economy). And the way to fix it was for the State to intervene and capitalize the banks, which literally saved the economy, jumpstarted growth and ended up with a financial sector that is currently considered the most stable and solid in the world, which among other things allowed us to pass through the current crisis completely untouched.
It took several years, however, and only in 1987-188 the economy started to see the effects of the measures. A series of very strict controls and checks were put into the bailout, in order to make sure baks would return all the money given to them (they finished paying off the whole thing in the mid-2000's). But when it was implemented, it seemed a pretty bleak scenario. It ultimately paid out, though.
|Klaus van der Kroft|
Aubrey the Malformed wrote:Sorry to disappoint, but the downtrodden masses of Europe didn't rise as one.Yes, I later realized that the planned southern European-wide general strike is scheduled for this week.
Cynical I know, but how would anyone tell?
Things may get worse before they get better in the European financial crisis, Reuters reports. The European Central Bank is pressuring for a joint guarantee on bank deposits across the euro zone, amid worries that bank runs will spread like wildfire as investors head for the hills. Top economic official of the European Commission Olli Rehn cautioned that without added monetary discipline, Europe will descend into a financial chasm.
They sure are milking the "crisis" for all it's worth. Let me explain: None of this was a surprise. I suspect the reason it happened when it did was that they had their Lisbon treaty and the increased control of the member countries' economies by then. There is no sense in wasting a good crisis to a politician, and they sure aren't.