Iceland Loses Its Banks, Finds Its Wealth

Cavanaugh, Tim
October 2011
Hit & Run;10/23/2011, p4
Blog Entry
The article discusses the rare wisdom exhibited by the tiny island of Iceland when its huge financial sector collapsed and several of its banks went out of business between 2007 and 2009. It says that Iceland found the common sense to loan out its surplus value at a profit instead of trying to bail out its banks. It explains how this helped Iceland avoid the effects of the crisis in global financial markets and to end its own crisis almost as quickly as it had begun.


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