Unlike here in the states or in Europe, the Icelanders told the bankers to piss off. Instead of bailing them out, they were sent into bankruptcy. The results were a fast and sharp decline, followed by a rapid, post-crisis economic recovery — faster and stronger than any other country in the world.
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The bailout of banks creates what the economists call a “moral hazard” because they don’t learn from their mistakes.
That’s our big mistake.
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