Topic: [2014-1-28] Let Banks Fail Is Iceland Mantra as 2% Joblessness in Sight (Read 2757 times)

Banks won't fell as long as they support politicians. Iceland did good thing though, be it was first to fall though.

Thousands of unemployed bankers. My heart bleeds. banks aren't even lending any more so what purpose do they serve? None. Just pay their CEO and cronies millions of dollars and do deals with Mexican drug cartels to process billions of dollars of drug money. And secretly fund Iran of course. Let them all implode, the sooner the better.

Have the entire banking system collapse and you'll eat your own words. This if nobody else will eat them first in a hunger panic.
Do you have a clue what that will mean? Thousands of unemployed people and business in ruin ?
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Don't agree in any way. What we have now is thousands of unemployed people (actually more than two million more joined the ranks of the unemployed in the last year) and tens of thousands of businesses in in ruins.

Banks, like any other companies don't "fail" per se. They go into bankruptcy. The laws were spicifically designed for such events. The bankrupt companies continue to operate mostly as normal and creditors sell off what assets are worth anything. Other banks in the US and around the world buy those assets and life goes on. The reason US banks weren't put into bankruptcy in 2007 had nothing to do with saving the financial system. If the banks were placed into bankruptcy, then all records would have become public and the CEOs would be rotting in jail now having faced civil and numerous other lawsuits. Which is what happened in Iceland. There was no way the government or the Fed was going to allow their buddies to be incarcerated so they bailed them out, and continue to bail them out with our tax money and by making a mockery of US accounting standards. Had they let them fail then we would now most likely be in full recovery mode with growing employment. Bottom line is there can be no recovery until the Fed lets them fail, or what will more likely happen, the whole system tanks.

Yeah, it was a big "fashion" at the time because UK interest rates were so bad. Was as huge problem for the government when the bank(s) collapsed as lots of people rightly said "why should we help people that put money in foreign banks" ...

Glad to gear you thought it like that.
People don't realize that bitcoin can't and will not replace banks. Banks will continue to survive even in a bitcoin ecosystem.

Where did I say anything about the entire banking system going down?  I said banks failing.  Banks could be 2 banks, it could be 10 banks.  The more people that distrust banks the better it is for Bitcoin, Gold, precious metals, etc.  Obviously if the whole banking system fails the price of Bitcoins is the least of anyone's concern.  People who think that's good for Bitcoin don't know the real consequences of that.  We've had banks fail in most countries around the world, and in the next 5 years, we will continue to have banks fail in Russia, Greece, Portugal, etc.

Bitcoins are strictly forbidden in Iceland.

Have the entire banking system collapse and you'll eat your own words. This if nobody else will eat them first in a hunger panic.
Do you have a clue what that will mean? Thousands of unemployed people and business in ruin ?

In my defense, bitcoin did get a (negative) mention in the comments.

Even though its not related Bitcoin directly, indirectly I think the OP posted this because of the inference of banks failing is not bad for Bitcoin.  Bitcoin is considered by many kind of the "anti-bank" mechanism now and in the future.  If banks fail, its not necessarily good, but it certainly isn't bad.

Must've been quite a lot for them to move their funds too. Interests rates haven't been worth much anywhere. I like my bitcoin interest rates though lol.

Maybe the missing link is that all countries that bailed out their banks saw their unemployment fates rise dramatically - US employment runs at about 23% now compared with the great depression of 25%. Iceland is the only country where unemployment has declined.

As to the forum, I kinda stopped worrying about where things go. People should remember it's a forum about a decentralized currency. The moderators are quite Nazi like but that's ok. Sometime I also have too much time on my hands.

Firstly, this should be in the Economic section, not Press.

Second, I don't necessary disagree with you either. In the industries that Iceland competes in, such as fishing, they are very competitive because of low wages. My bigger gripe with the article is that it doesn't make a link between the decision not to bail out the banks and low unemployment. I'm sure there is a link, but this article does a poor job of stating it.

Didn't lots of UK citizens have their money in Icelandic banks a couple of years ago because the interest rates were higher?
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Yup. Not sure if any of them got their funds back from the Iceland government.

I don't agree with this. They don't have much industry that competes with other countries nearby and Norway, which is one of the most socialist countries with some of the highest wages and taxes in the world is one of the richest countries in the world with the best funded banks. The key to most successful economies may be a small and well educated population. There are many countries with low wages that are in total poverty.

Didn't lots of UK citizens have their money in Icelandic banks a couple of years ago because the interest rates were higher?

No mention of bitcoin in the article...

Oh, and their unemployment is low because wages are much lower compared to other nearby countries.

http://www.bloomberg.com/news/2014-01-27/let-banks-fail-becomes-iceland-mantra-as-2-joblessness-in-sight.html

Pretty good article and some good comments too.