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View Diary: The Euro Crisis by the numbers (165 comments)

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  •  I've been (6+ / 0-)

    sorta-kinda tracking this via the NYT business section, and their analysis isn't far from yours, gjohnsit.  Recent stories/news analysis has reported the contagion spreading from Portugal, Italy, Ireland, Greece and Spain to the healthy economies of France and, yes, Germany.

    Interestingly, the one nation that seemed most likely to implode due to exorbitant debt after the recent crash -- Iceland -- is doing better than the others.

    Why?

    It ignored all the austerity bullshit the IMF routinely hands out.  I don't remember the particulars, but any nation in a heap of trouble could do worse than researching how Iceland -- faced with collapse just a year or so ago -- recovered so quickly.  Not that it's completely back on the same footing it was before the crash, just...it is no longer in danger of default, iirc.

    •  Iceland *did* implode (1+ / 0-)
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      gjohnsit

      It did take IMF loans, and it did implement heavy austerity.

      There are some crazy Iceland myths that are circulating around here, and it gets really annoying after a while.  The only reason why Iceland's "recovery" is what it is, BTW, is that they went into such a deep hole, so long ago (they went down right after the US banks crashed, long before Greece et al), it would be almost impossible for them not to have started digging out of it by now.  But realize when, for example, you see their unemployment figures, that the usual unemployment rate in Iceland is 1-2%.  And please be well aware of what the catastrophic currency collapse (half its value, and it's still down there) means for ordinary Icelanders, in a country where almost everything is imported and where home loan principle amounts are often indexed to the exchange rate.  

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