You may not know it, but one of the hardest hit countries in this world-wide recession was Iceland. Before the recession hit, Icelandic banks were riding high (just like banks in America and Europe). In an effort to get ever bigger returns on their money, many Europeans put their money in these Icelandic banks (especially people from Great Britain and the Netherlands).
But then the recession hit and many of those banks went under, causing depositers from Great Britain and the Netherlands to lose about $5 billion. Those two countries stepped in and paid back their own citizens who lost money. Now they are demanding the government of the tiny country of Iceland pay them back that $5 billion.
A few months ago, the government thought it had reached an agreement with the governments of Great Britain and the Netherlands to pay back the money. But when it was put to a vote of the Icelandic people, they voted the agreement down by a large majority. Most said they didn't see that they should have to pay for mistakes made by greedy bankers.
Since then, the Icelandic government has been trying to re-negotiate a new agreement with the two countries. But those talks have now broken down. Iceland's Finance Minister Steingrimur Sigfusson said, "We had hoped to be able to reach a consensual resolution of this issue on improved terms, but this has not yet been possible."
The Icelandic government is in a bad position, caught between the governments of Great Britain and the Netherlands, and their own people. The failed resolution of this economic mess has also delayed Iceland from getting badly needed money from the International Monetary Fund (greedy Western bankers) and delayed their possible entry into the European Union.
I tend to agree with the people of Iceland. I don't see why they, hurt as much or more as anyone by the recession brought on by greedy bankers, should now have to use their meager savings and salaries to pay back money lost by egregious mistakes of the same greedy bankers. The bankers lost this money and they are the ones who should pay it back (even if it has to be taken out of their worthless hides).
What do you think? Should taxpayers have to pay for mistakes made by greedy bankers?
no way should icelanders pay for the banks greedy mistakes. individual people should not be held responsible for things they had nothing to do with. i don't know how to solve this problem, but i hope it is sorted out for the betterment of the icelandic population. it is a beautiful country full of really wonderful people who have been blindsided by corrupt government.
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