Disclaimer. After nearly 40 years managing money for some of the largest life offices and investment managers in the world, I think I have something to offer. But I can't by law give you advice, and I do make mistakes. Remember: the unexpected sometimes happens. Oddly enough, the expected does too, but all too often it takes longer than you thought it would, or on the other hand happens more quickly than you expected. The Goddess of Markets punishes (eventually) greed, folly, laziness and arrogance. No matter how many years you've served Her. Take care. Be humble. And don't blame me.
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Thursday, February 23, 2012
When the GFC hit Iceland, the authorities at first attempted to do the orthodox (but not necessarily the right) thing. They proposed a massive austerity program. The president of Iceland refused to sign the laws into effect. The people supported him. The government fell, and Iceland defaulted on its debts.
And guess what? Iceland's recovering.
One beneficial factor that Iceland had which Greece, Ireland etc don't, is that it had its own currency, the krona, which was allowed to devalue. But it's such an open economy and so small that that won't have had any major impact.
Posted by Nikolaos at 7:33 AM