Saturday, 9 April 2011

So what's happening in Iceland?

Today Iceland held their referendum on whether to accept liability for the debts of a private bank. This is hugely significant as it represents the alternative to the narrative that has been repeated ad nauseam in the rest of Europe that there is no option but to nationalize these debts, forcing the general public to take the hit that would otherwise be taken by investors. It has gone pretty much unreported, and I still don't know what the outcome was. I was passed this article about the options facing Iceland by the American economist Michael Hudson. He makes the case very convincingly that there are alternatives.