Look at Iceland. Rather than do a stimulus package and give money to the banks, they actually forgave all mortgage debt greater than 110% of the value of the home. Then they threw the bankers in jail. Guess what? Their economy corrected itself and they are one of the only economies that is actually GROWING now. They don’t even want to join the EU anymore since they are doing so well.
However, all of these government bailouts by the govern,ent have stagnated the economy... just like every government bailout before it. If the government would have let things crash four years ago, then our economy would be booming by now... just like Iceland.
“However, all of these government bailouts by the govern,ent have stagnated the economy... just like every government bailout before it. If the government would have let things crash four years ago, then our economy would be booming by now... just like Iceland.”
I agree !!!!
But then BO couldn’t give our money as kickbacks to all his supporters.
The people of Iceland showed real spine. They are obviously a cohesive, wise, community. When the crisis hit, the EU sent delegates to tell Iceland that they “had” to join the Euro, and that measures would be imposed on them to correct the economy. They just refused - and it has paid off. They have their own currency, and they did not try to rescue insolvent banks. Their own depositers were refunded - but not foreigners. People who make foreign investments take risks. Shareholders in banks also take risks, as they learnt in Iceland.
A good dose of bitter medicine, quickly swallowed, and onward to better day. Meanwhile, Portugal, Ireland and Greece still languish, and have to pay more and more to rescue speculative banks.