Indeed, a CNBC article from November of last year stated that one out of two U.S. mortgages is effectively underwater.
In addition to the debt forgiveness, the Icelandic Supreme Court ruled in June 2010 that loans indexed to foreign currencies were legal, which means that Icelandic households were no longer expected to cover krona (the Swedish currency) losses.
The most important factor of their approach, however, is that every step of the way they have put their own people before the markets. This is essentially the polar opposite of what we have seen so many other nations do in response to debt crises.
The Icelandic government basically left international creditors to deal with their failed loans on their own, removing all responsibility from their own people.
Now Iceland is proceeding to actually prosecute some of their formerly most powerful bankers and the Icelandic special prosecutor has stated that it very well may indict some 90 people.
Meanwhile, over 200 people, including the former chief executives of Iceland’s three biggest banks, face criminal charges for their activities.
Maybe some other nations should take a page out of Iceland’s book and think about their people before the banks that caused the crisis in the first place.About the Author
Madison Ruppert is the Editor and Owner-Operator of the alternative news and analysis database End The Lie and has no affiliation with any NGO, political party, economic school, or other organization/cause. He is available for podcast and radio interviews. If you have questions, comments, or corrections feel free to contact him at admin@EndtheLie.comread full article here
The Silent Revolution: Icelandic Anger, Debt Forgiveness and Activist Triumph | Wake Up World