Krugman: The $850 billion bailout (of Iceland)

[BurtWorm]

http://krugman.blogs.nytimes.com/2008/09/30/the-850-billion-bailout/

Iceland has just bailed out Glitnir Bank, with the government putting in 600 million euros — $859 million — in return for a 75% stake.

Iceland has only a bit more than 300,000 people, about 1/1000th the population of the United States. So this was, per capita, the equivalent of an $850 billion bailout here.

Notice, by the way, that it was an equity injection rather than a purchase of bad debt; I approve.

[Jakes Progress]

1. If Iceland can enact an equity

for the government position, why can't we? The media keep telling us this isn't a bailout for the rich, but all the taxpayer gets for his money is the chance to take all the bad debt away from the rich. The rich get to keep their good investments and drop their bad ones. The rest of the country loses money; they make money. Krugman and Greenwald are right. Make the bill an equity purchase and then we will see them run away from this being an urgent bill to pass. If the bill doesn't leave them richer, they won't think it is so urgent.

[Icelander]

2. iceland

Well,It might sound good from afar but there´s a distinct feeling over here in Iceland that other possibilities could have been looked at and this might have been done to cause harm to a long standing enemy of our former prime minister now head of the national bank.

He´s been on a personal vendetta for years against the people who stand to lose the most in this transaction.

And the government stands to make lots of money from this deal.

Yeah it was quick ,Yeah it happened during the night the parliament was NOT even told about this and Yes the taxpayer and press were kept out of the loop.


Seems like a shady deal to me and a lot of Icelanders.

You guys dont hold the patent for lousy government.

[BurtWorm]

3. Really?

You're from Iceland?

[Icelander]

4. Yes Im from iceland

And following your election religiously.

[ContinentalOp]

6. LOL wow. Sounds familiar! -nt-

[Canuckistanian]

7. Whoa, thanks for your post

I'm beginning to wonder if the same solutions are being proposed for the same problems worldwide.

I don't have much hope for a just solution.

[2speak]

5. Own it all 100%