Iceland Is No Ireland as State Free of Bank Debt, Grimsson Says
Perhaps with some advice to the Irish and the rest of the World?
Iceland’s President Olafur R. Grimsson said his country is better off than Ireland thanks to the government’s decision to allow the banks to fail two years ago and because the krona could be devalued.
“The difference is that in Iceland we allowed the banks to fail,” Grimsson said in an interview today.
“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.”
As a consequence
, “Iceland is faring much better than anybody expected,” Grimsson said.
“How far can we ask ordinary people -- farmers and fishermen and teachers and doctors and nurses -- to shoulder the responsibility of failed private banks,” said Grimsson. “That question, which has been at the core of the Icesave issue, will now be the burning issue in many European countries.”Indeed, how far and long can the populace be burdened with the crimes of the banksters?