Iceland refuses to honour international agreements

Discussion in 'Economics' started by Debaser82, Feb 20, 2011.

  1. Ed Breen

    Ed Breen

    The issue is not whether there will be repercussions. There are always repercussions...consequences foreseen and unforseen that flow from policy choices. The question is which consequence is better for the Icelandic people who have to make the policy choice. The U.K. and Holland made the policy choice to socialize the default of the ice save accounts by making a small minority of hot money speculators whole on the back of all the taxpayers who never made the speculation. That decision has its own consequences. It is not like countries have never defaulted before...you would think that no one remember how the U.S. bailed out Mexico and Brazil in order to socialize the loss from Chase and Citi Bank speculaiton in latin foreign debt. Its like no body has any memory...countries have been defaulting all through history..this is not new....and today everyone wants to lend Brazil money like they never ever defaulted before.
     
    #61     Feb 24, 2011
  2. So you're effectively saying that democracy doesn't work?
    Of course, I am not suggesting there's some sort of a moral or legal obligation. I am simply stating that Iceland refuses to abide by the set of EEA rules that it finds punitive now, while it happily benefited from the same rules in the past. That should have implications, up to and including expulsion from the EEA.
    Frankly, I don't see why the fundamental legal principle of "ignorance of the law excuses no one" should be discarded in this case.
    Well, we're gonna have to disagree on this one, I guess... I just don't see anything immoral or fraudulent about deposit insurance.
     
    #62     Mar 1, 2011
  3. Maybe they should split the difference...

    After all, what about the "sophisticated investors" (why are they always sophisticated until they fuck up?) who took on the risk - it has consequences too.

    Do better due diligence.
     
    #63     Mar 1, 2011
  4. zdreg

    zdreg

    the issue is money not politics.
    to say that the viewpoint of no repercussions is naive is worthless if you don't offer points to the contrary.
     
    #64     Mar 1, 2011
  5. moarla

    moarla

    i cant understand the discussion...
    why the icelandic people should pay for debts from a private bank?

    a shout in the asses of the people who was accepting high interests without taking on the risks and a nice "sorry"; THATS IT :)))

    every other country should do the same
     
    #65     Mar 1, 2011
  6. rew

    rew

    They have a decent income per capita, but the capita is pretty damn small.
     
    #66     Mar 1, 2011
  7. it appears that the masses are being held responsible for the machinations of a few. which isn't logically or morally right



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    #67     Mar 1, 2011
  8. syrre

    syrre

    True, but some of the fish is stolen from norwegian zones. I think Norway could bail them out, if they promised to never steal fish again.
     
    #68     Mar 1, 2011
  9. Well, it looks like the "masses" in Iceland are saying "No".
     
    #69     Mar 1, 2011
  10. When you owe the bank 10k, you have a problem.

    When Iceland owns the bank 100 billion dollars, the bank has a problem.
     
    #70     Mar 1, 2011