Iceland President Olafur Ragnar Grimsson tells Al Jazeera’s Stephen Cole that Europe should let banks that are ran “irresponsibly” go bankrupt.
Speaking at the annual World Economic Forum in Davos, Grimsson also held his country as a model of economic recovery after its near-collapse four years ago.
“We didn’t follow the traditional prevailing orthodoxies. And the end result four years later is that Iceland is enjoying progress and recovery.”
Remember the four steps to turning bad fortunes around: Admit, repent, reform, recover.
Here is a direct link.
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Government Deposit Insurance takes away the responsibility of the depositors to do their due diligence before entrusting their money to an institution which leads to banks irresponsibly gambling in the market as all bets are covered by the government. Let them go broke as they must for our economic system to work.
Global capitalism needs massive banks, but big private banks have the power to prevent regulation and threaten more crisis. The solution is not breaking them up but making them public.
Ya, because the government does so well with everything they touch…
Iceland did the right thing. Our government however, is the best money can buy and would never do that, or rarely any other right thing, not for the citizens of the country anyway as they cater completely to the lobbyists and banksters.
“Global capitalism” has no need of massive banks. Get to http://www.mises.org and get out from under the cloud of ignorant statism.