[geezer466]

Iceland is safe to invest in again, according to Fitch, which has upgraded its credit rating three years after its economy spectacularly collapsed. Fitch raised Iceland's sovereign rating by one notch, to BBB- from BB+, meaning that the country's debt is now "investment grade"

Interesting that Iceland is being brought back in from the cold at such a pivotal time.

The fact they had their own currency and were able to devalue to 'get the bad stuff' over quickly has brought them back from the cliff edge much quicker. Complete bust to something approaching normality in just three years. A greek would snatch your hand off for a piece of that!!

[PricedOutNative]

Icelandic people are more willing to sail into the unknown than the Greeks, just look at their histories...

[TheBlueCat]

PricedOutNative, on 17 February 2012 - 05:49 PM, said:

Icelandic people are more willing to sail into the unknown than the Greeks, just look at their histories...

That's a bit unfair:

http://en.wikipedia....Greek_explorers

[Toto deVeer]

Hell, they paid back their IMF loan early. That should be good for an upgrade. Arresting and prosecuting bankers should also put the fear into the ratings agencies.

[Bloo Loo]

it costs as much to make a cup of tea in Iceland as it does in Greece in terms of human time.

Why has devaluation helped?

I say...default has done the job nicely, and that financialisation of everything Icelandic made everything too expensive to sell.

[Secure Tenant]

Small economy innit. Wouldn't work for Greece, or us.

[no accountant]

"Steed", on 17 February 2012 - 07:07 PM, said:

Small economy innit. Wouldn't work for Greece

Why not? If they devalue by 60% then almost all tourist going to the Med would go there, and they have full employment before the summer's out.
I getting ready on Hire Your Own Island for Week buy button.

[geezer466]

Tourism is Greece's best only bet............

[BalancedBear]

You cannot really compare the two. Iceland was brought to its knees by its banks, but the government was otherwise living fairly well within its means. The problem in Greece is that the Government is borrowing just to keep paying bills, and is living way beyond its means. Devaluation in Greece - if it had its own currency would not help at all. It woul still need to implement massive cuts, which is what the Greeks don't like.

Just the same as in the UK, we could devalue all we like, but cuts in government spending are still required.

[Qetesuesi]

geezer466, on 17 February 2012 - 08:00 PM, said:

Tourism is Greece's best only bet............

http://cleanenergyso...omy-solar-power

[Nomak]

BalancedBear, on 17 February 2012 - 08:20 PM, said:

You cannot really compare the two. Iceland was brought to its knees by its banks, but the government was otherwise living fairly well within its means. The problem in Greece is that the Government is borrowing just to keep paying bills, and is living way beyond its means. Devaluation in Greece - if it had its own currency would not help at all. It woul still need to implement massive cuts, which is what the Greeks don't like.

Just the same as in the UK, we could devalue all we like, but cuts in government spending are still required.

True.

Also the problems Iceland had (the banks) while serious, weren't long term. They just let the banks go bankrupt, and rebuilt from there.

It doesn't have problems of tax collection, corruption, embezzlement, bureaucracy etc. that Greece has, that will take years to fix (if at all).

[RufflesTheGuineaPig]

Prior to the banks turning up and f*cking everything up, iceland was fine.

They are very family centric and have a tiny population compared to the land mass.

Greece was screwed before the banks helped them "improve their quality of life" and simply doesn't have the social cohesion of iceland. They also owe several magnatudes more.

[Mikhail Liebenstein]

Toto deVeer, on 17 February 2012 - 06:51 PM, said:

Hell, they paid back their IMF loan early. That should be good for an upgrade. Arresting and prosecuting bankers should also put the fear into the ratings agencies.

I'm waiting for the case of the Greek People versus Goldman Sachs to be drawn up and taken to the EU.

[copydude]

BalancedBear, on 17 February 2012 - 08:20 PM, said:

You cannot really compare the two. Iceland was brought to its knees by its banks

I'd venture to suggest that Iceland is comparable to many. Tiny Ireland was brought to its knees by banks. Iceland also had a rash of overbuilding property no one was ever going to buy. And people buying Range Rovers ( 'Game Overs') on credit.

The difference is that Iceland wasn't held to ransom and usury (or 'rescued') like its bank-stricken counterparts. It wasn't forced to privatise its only assets - like selling its thermal energy to Deutsche Thernalkom - and it didn't have the ball and chain of EU regulation preventing it from utilising local resources (like whale blubber) to revitalise the economy. Most of all, it wasn't forced to recapitalise its criminal banks, a la Ireland and Greece.

[The Eagle]

RufflesTheGuineaPig, on 17 February 2012 - 11:45 PM, said:

Prior to the banks turning up and f*cking everything up, iceland was fine.

They are very family centric and have a tiny population compared to the land mass.

Greece was screwed before the banks helped them "improve their quality of life" and simply doesn't have the social cohesion of iceland. They also owe several magnatudes more.

You clearly don't know what you are talking about. in Greece family is far more important than in most other European countries, also social cohesion among common people is far stronger than in center-north Europe (where individualism is king), the difference is in Greece (like also in Italy, but not as strongly) the state is seen as an intruder/oppressor rather than part of social life.

This post has been edited by awake_eagle: 18 February 2012 - 05:47 PM