Last Lap Dance for the Bankers – Iceland Speaks

Let the banks go down says Olafur Grimsson at the World Economic Forum in Davos


by Dr. Virginia Abernathy


Iceland is a small country, under 1 million citizens with a very homogeneous culture, so perhaps its lessons are not broadly applicable.

Nevertheless, I have been proud of the Icelanders since they let their banks take the consequences – bankruptcy – of their greedy bets on derivatives and other financial “products”.

Recalling the history of a few years ago, the Icelandic government initially said that the innocent Icelandic citizens would bear the burden of the banks’ irresponsible practices.  But mass protests led to a rethink.

The Icelandic President called for a referendum on the general public assuming bank debts. The bankers lost.

Citizens voted to let the banks fail. Iceland went through a rough patch but, after four years, is prospering. At least one Icelandic banker has gone to jail.

This all makes one think that Americans should have started protesting when Alan Greenspan arranged for a bailout of Long Term Capital Management in 1999.  Or maybe earlier, when Chrysler was bailed out in the 1980s, because nothing is sacred about car companies, either.

Bailing out businesses that make a mistake creates “moral hazard”. For the sake of super-profits, businesses [or households] are encouraged to take risks on the assumption that any losing bets will be covered by the all-suffering tax-payer.


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About the Author:  Virginia is retired from the Vanderbilt University Medical School and at Harvard’s before that. She has been a long time American Heritage activist, and has spent many years fighting our corrupt illegal immigration system.

Editing:  Jim W. Dean

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Posted by on January 29, 2013, With 5347 Reads Filed under Of Interest. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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14 Responses to "Last Lap Dance for the Bankers – Iceland Speaks"

  1. thorshammer1999  February 4, 2013 at 5:34 pm

    well done iceland

  2. K7KTR  January 31, 2013 at 12:33 am

    That is like watching Germany want its Gold back and France and the US Non-Federal FEDERAL RESERVE say “WE” don’t have it and then suddenly there is an Al Qaeda problem in Mali who is Africa’s 3rd Largest Gold producer… HINT! and that when France and US Fed said it would take 7 years to acquire the LOST Gold that France said it would be “About” 7 years before they left Mali.

    Banking War’s and they don’t care who the Murder to fill their Coffers.

    Remember too that Bernanke said, “I’m not telling WHO got what Trillions in Bail-Out’s but that YOU and Your Children’s Children will have to pay for that FRAUD as the Fed is printing 85 Billion a month to keep these Banks afloat.

    As we watch the Austerity tsunami wave crash over Europe and now England we know since the London Banks and US Banks are joined at the hip, that this WAVE will soon hit the US Shores and the debris from further banking FRAUD will choke this economy. About that time the Banks will say IRAN destroyed/Hacked their system[s] and when American’s Debit Cards wont work they will believe the IRAN story and GAME ON!

  3. K7KTR  January 30, 2013 at 2:04 pm

    Great article Mr. Dean, Though I have to admit that I kept going back to look at that smooth shaved…. 🙂

    • Jim W. Dean  January 30, 2013 at 3:35 pm

      Well K7, Almost all of us have had some close shaves…so I thought that image was a good representation. Having to take a bath is one thing but you need something to start over.

      That said, we do succumb to the tabloid paper urge every now and then 🙂

    • K7KTR  January 31, 2013 at 12:23 am

      Thanks Mr. Dean,
      Now I don’t feel so bad for blogging as I type with one hand. 🙂

      Great Article as usual. But not like reading the Penthouse forum in the 70’s. 🙂
      Thanks for all You and Mr. Duff do.

  4. stephanaugust  January 30, 2013 at 10:33 am

    Following the crisis which has a new name every two years or so, and seeing (um, not really, no) all the money pumped into the system, I have ONE QUESTION:

    Why is there no hyperinflation Weimar style? Not even the Mises Institute or the articles at marketoracle explain this. Any ideas anyone?

    • winston smith  January 30, 2013 at 6:20 pm

      The money is not in the general economy.,is why.
      The un constitutional privately owned bank cartel called the
      Federal Reserve is giving the money to the insolvent zombie banks to stop a collapse.

      “You can ignore reality,but you can’t ignore the consequences of ignoring reality”.
      The upcoming resultant crash will destroy the dollar completely,.and set living standards back 150
      years in the US.years.Invest in ABCD;Anything Bernanke Cannot Destroy.

    • Jim W. Dean  January 31, 2013 at 5:59 am

      “You can ignore reality,but you can’t ignore the consequences of ignoring reality”.

      Winston, you are nominated for the best quote of the week so far!!

  5. CoJonesGrandes  January 30, 2013 at 7:35 am

    The NWO had marked Iceland as one of their possessions but they are not infallible.
    Here’s a mural on the side of a building on the main shopping street of Akureyri, the largest town in northern Iceland:
    Note how they cleverly disguised the words ‘NWO’ at the base.

  6. Risodang  January 30, 2013 at 7:19 am

    Anyone remember just as they stood up to the Oligarch bankers and the EU, the islands of Iceland started shaking and the volcanoes became active. What a coincidence!
    Mutha nature or???
    Congratulations to Icelandic Peoples…

  7. Jim W. Dean  January 30, 2013 at 6:41 am

    They still have the problem of a lot of people upside down in their realestate, so there was no magic reset button there.

    But I think it was an easier decision for them. It was obvious to everybody that austerity with gov cutbacks, etc…would spiral the country down. In a small place like that once the jobs are gone the ripple effect is quicker and more permanent. It would have been like walking the plank or taking your chances on a leaky ship. You pick the ship.

    There had been talk earlier of their not dismising the possiblitity of inditing foreign bankers on conspiracy and fraud charges.

  8. kelli  January 30, 2013 at 5:47 am

    Thousands if not millions of us called our representatives and said no to the bailout. It was not enough. They did not listen to us. It was not enough. The Occupy movement came about too late. We should have shut the place down in 2008.

  9. Charlotte NC Bill  January 30, 2013 at 3:43 am

    Why couldn’t I have been born in a decent country….like Iceland?

  10. peter  January 29, 2013 at 10:25 pm

    They went up and protested outside the presidents house! I do recognise that Iceland is small in numbers but it would be amazing if people massed and simply said no more. Wishful thinking I know. However one girl, only twelve, named Victoria grant gave a simple strait up speech about how our central bank was usurped. This is in Canada and you should be able to find it on utube.

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