Southern Iceland

Banks responsible for their actions?  People not wanting Public dollars to repay private investment failures? The people of Iceland got it right unlike our neighbours who throw billions into the private investment arena and then cry poverty when it comes to budget time and suddenly finding the need to cut public programs to ‘balance’ the budget.  Iceland though is refusing to play the game.

“Icelanders say citizens should not bail out irresponsible bankers who were blamed for the collapse of the Icesave bank and the loss of hundreds of millions of dollars.”

I wonder if anyone during the referendum said that “Icesave was too big to fail…”

“The debt was incurred when Britain and the Netherlands compensated their nationals who lost savings in online Icesave accounts owned by Landsbanki, one of three Icelandic banks that collapsed in late 2008.

Icelandic lawmakers in February backed the repayment plan agreed with creditors in December, but the president refused to sign the bill, triggering the referendum.

In March 2010, Icelanders rejected an earlier Icesave repayment blueprint in a referendum.”

The will of the people of Iceland should serve as an example to all when it comes to the financial sector and how to deal

An Icelandic volcanic spa

with the inevitable static produced by the strongmen of the system.

“In a first stage in legal proceedings last year, ESA said that Iceland should pay compensation to Icesave depositors.

Danny Alexander, Britain’s chief secretary to the treasury said on Sunday he was disappointed that Icelanders had again rejected an “Icesave” debt deal.

“It is obviously disappointing that it seems that the people of Iceland have rejected what was a negotiated settlement,” Alexander told BBC television.

“Of course we respect the will of the Icelandic people in this matter and we are going to have to now go and talk to the international partners with whom we work, not least the government of the Netherlands.

“It now looks like this process will end up in the courts,” he said.”

The people of Iceland have a point, why should they shoulder the burden of a private company that made bad business decisions?  The idea of privatizing the profit and leaving the risk to the public clearly has no currency in Iceland.

“I know this will probably hurt us internationally, but it is worth taking a stand,” Thorgerdun Asgeirsdottir, a 28-year-old barista said after casting a “no” vote at the Reykjavik city hall.

Svanhvit Ingibergs, 33, who works at a rest home, said: “I had no part in causing those debts, and I don’t want our children to risk having to pay them. It would be better to settle this in a court.”

The dispute over repayment has soured relations between the small North Atlantic island nation and the two other countries.”

Hopefully the courts will rule with the people on this one and in this case the financial sector will not be repaid for its avarice and foolhardy behaviour.