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View Diary: If the Euro fails. (282 comments)

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  •  and yet relative to the rest of the countries (4+ / 0-)
    Recommended by:
    DRo, Odysseus, Losty, Creosote

    that have gotten thrashed recently - in particular the baltics, but also greece and spain - iceland is doing far better.

    •  By following the IMF plan. (0+ / 0-)

      And by putting a good chunk of a year's worth of GDP into their banks.  And again, they went down in the hole before these other countries and are so deep in it that it'd be hard not to come out of it.  Plus, to reiterate, a lot of the comparisons are simply things that Iceland's always been stronger in, like unemployment rate and social services.

      •  and yet all the other ones, that didn't stick it (0+ / 0-)

        to the investors, fell just as brutally hard as iceland, but have not bounced back. the only one with any economic recovery to speak of has been iceland.

        •  Many issues with this. (0+ / 0-)

          1) No, they haven't.  Name another country that had consumer prices go up ~40% and the principal on private homes go up so much (formerly ~100%, now more like ~40% or so) at the same time as a 15% across-the-board service cut, higher taxes, and an unemployment spike.  Note that I said principle on homes, not interest.  Iceland's strange home loan structure amplified the currency collapse's impact on normal people.

          2) Iceland has not "bounced back" by any means.  Please stop saying that.  It has a good long-term prognosis.  It's still just as deep in the hole.  Some of the austerity measures haven't even taken effect yet.

          3) Iceland fell earlier than all of the others except the US (and went way deeper than the US); their bank collapse was triggered immediately from the US bank collapses.  Once again, to fall that deep, that long ago, it'd be a bloody miracle for them not to be recovering by now.

          4) None of the other countries had a private debt problem involving private debt many times the size of the nation's GDP.  Other countries are dealing with national debt problems, and not of the same scale compared to GDP.

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