Iceland let its banks collapse in the GFC

Iceland is gutsy. Unlike every other economy that I am aware of it let its banks take the rap for their own mistakes in the GFC of 2008.

The Icelandic Prime Minister at the time said :

“…dozens of banks around the world have had to throw in the towel and look to the state for assistance in their home countries. The problem which faced the Icelandic Government when this chain of events was unleashed was more serious than the problem facing other governments, because of how large the Icelandic banking system was in proportion to the economy. It was, therefore, clear that it was neither sensible nor feasible for the Icelandic state to shoulder the burdens of the entire banking system.”

So I was wondering how the Icelandic country was faring now, and you would have to say they have managed their way quite successfully. The Icelandic unemployment rate before the GFC was about 2% and was at its worst in October 2010 with 9.2% but varied between 6% and 8% during the intervening time frame.

Icelandic GDP was negative for two years but has since been improving overall with the figures for the end of 2013 being a 4.9% growth.

I really want to say a heartfelt congratulations to Iceland for their impressive spirit to standup to a corrupt system, even though they felt they did not have any choice, and to manage their people through such difficult times.

In the filming of Ben Stiller’s new movie The Secret Life of Walter Mitty, he and his crew travelled to seven locations in Iceland. Icelandic media reported that locations in the film included Seyðisfjörður in East Iceland; the Stykkishólmur village on the Snæfellsnes peninsula in the West; and at the coast of Garður on Reykjanes Peninsula in Southwest Iceland.

During the filming of The Secret Life of Walter Mitty, Ben Stiller and the crew travelled to seven locations in Iceland, some unknown to most visiting the country.

Icelandic media reported that locations in the film included Seyðisfjörður in East Iceland; the Stykkishólmur village on the Snæfellsnes peninsula in the West; and at the coast of Garður on Reykjanes Peninsula in Southwest Iceland.

It was reported that Ben Stiller spent five weeks in Iceland filming what has been announced as the most extensive foreign film project in the country for 2013 – and 250 Icelanders worked on the project.

Again, congratulations Iceland.


References

http://www.icenews.is/2008/10/16/unbowed-icelandic-pm-sends-a-strong-message-to-uk/

http://www.tradingeconomics.com/iceland/unemployment-rate

http://www.tradingeconomics.com/iceland/gdp-growth-annual

http://www.icenews.is/2013/12/27/ben-stillers-the-secret-life-of-walter-mitty-captures-icelands-hidden-gems/

http://www.icenews.is/2011/09/15/ben-stiller-on-visit-to-iceland/

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