Iceland Jails Bankers, Erases Citizens’ Debt, Recovers Strongly

 Seriously, the most advanced place on Earth. Bloomberg writes:

Icelanders who pelted parliament with rocks in 2009 demanding their leaders and bankers answer for the country’s economic and financial collapse are reaping the benefits of their anger.

Since the end of 2008, the island’s banks have forgiven loans equivalent to 13 percent of gross domestic product, easing the debt burdens of more than a quarter of the population.

The island’s steps to resurrect itself since 2008, when its banks defaulted on $85 billion, are proving effective. Iceland’s economy will this year outgrow the euro area and the developed world on average, the Organization for Economic Cooperation and Development estimates.

Iceland’s approach to dealing with the meltdown has put the needs of its population ahead of the markets at every turn. Once it became clear back in October 2008 that the island’s banks were beyond saving, the government stepped in, ring-fenced the domestic accounts, and left international creditors in the lurch. The central bank imposed capital controls to halt the ensuing sell-off of the krona and new state-controlled banks were created from the remnants of the lenders that failed.

Iceland’s special prosecutor has said it may indict as many as 90 people, while more than 200, including the former chief executives at the three biggest banks, face criminal charges. That compares with the U.S., where no top bank executives have faced criminal prosecution for their roles in the subprime mortgage meltdown. The Securities and Exchange Commission said last year it had sanctioned 39 senior officers for conduct related to the housing market meltdown.

71 Comments on "Iceland Jails Bankers, Erases Citizens’ Debt, Recovers Strongly"

  1. NIGHTBLADE77 | Jul 19, 2012 at 9:56 am |

    sounds like their government gets the needs of THE PEOPLE

    • AmericanJJ | Jul 19, 2012 at 10:46 am |

      sounds like the people demand that the government and have a good ass whopping to back it up

      • Callmemaybe | Jul 19, 2012 at 1:58 pm |

        freaken vikings are so bad ass they vote with by throwing stones. Now thats politics 

  2. DO THIS IN AMERICA!!!!!!!!!!!!!!!!

  3. OneOfMany | Jul 19, 2012 at 11:15 am |

    Those who like this story may want to read the comments at the end of the article.
    Not only is it from Feb but sounds like it’s more of the same crap wrapped in a nice dress. 🙁

    • Camron Wiltshire | Jul 19, 2012 at 11:51 am |

      Here is more recent news:
      Iceland Has Hired An Ex-Cop To Hunt Down The Bankers That Wrecked Its Economy

      Read more:

  4. So I shouldn’t be responsible for the debt I voluntarily incurred?  Its this lack of self-responsibility in all aspects of our lives that is dragging us done as a country and as a culture.

    • seriously?
      have you been paying any attention to what’s been going on in the world of finance??
      *shakes head*

    • George Michael Anderson | Jul 19, 2012 at 12:46 pm |

      How about the person who sold you the financial equivalent of snake oil?  Shouldn’t they be responsible for selling you what was essentially a bad deal?  What about the company that constantly says “Sell, sell, sell!” without any regard to the human cost?  Shouldn’t they be responsible as well?  

      It’s all well and good to be responsible for one’s self, Bubba, but it goes both ways.  You bet.

    • Everyone needs a break. This is not forgiving voluntary debt dumbass . Its about white collar  criminals that make money, by being the middle men in every transaction  and causing you more dept, while bringing a countries whole financial system down. Dont act all responsible and politically correct, this is not the time for that, your mommy is not watching anymore. You obviously have no idea about the financial problems facing the world today. I hope you are trolling or else you are gravely misguided. IF anything this is recovering the economy so people can have healthy debt that comes from going after what one desires without any criminals in the highest level of financial management leeching off of everyone making huge fortunes out of nothing. I had a bank dump tons of fees on me for no reason on a small account that turned into huge sums compared to what it was. The moment a banker does something criminal using your money and debt, it becomes a corrupt situation and the criminal that caused the problem needs to assume all the debt because at that point you cant tell whats your debt or the debt they brought on  you by selling you illegal financial products or leeching on ridiculous fees. Industry will take a little hit but that’s expected in industry just like natural disaster damage every year. 

      •  you had me at ‘dumbass’ 🙂

        • Usually im not proud when i feel i have to attack a debater personally but this extreme ignorance just pisses me off. dood is probably a bill collector bored at work.

      • usedtobesupermom | Jul 19, 2012 at 9:57 pm |

        beautifully stated 🙂 

        • Thanks but im just regurgitating the obvious. Im sure you are infinitely more beautiful than the statement. 

          • usedtobesupermom | Jul 20, 2012 at 9:00 am |

            thank you. I used to be pretty, but age, some illness & disability has taken it’s toll on me. Keep up the good work- many are still blind to the reality. I warned for many years about Wall St. crashing due to fraud, the housing bubble & the economy that would be destroyed in part because of it- I was called names. The statute of limitations is getting nearer for the criminals of Wall St. & nothing has been done. They NEED to be held accountable or we will NEVER recover. Politicians are guilty too- they are accomplices in the biggest Ponzi scheme ever- Wall St. is still doing what they were before the crash. Have you heard of “Interest swaps”? that’s another ponzi scheme that is taking down cities & states now. Stay alert & share what you know.

          •  Many decent people like you who are in the know about finances knew something was about to break, but the ones in charge of policing such sectors were the ones committing the crimes. Its Cliche but “Power corrupts, Absolute power corrupts absolutely”. Going esoteric and dealing with sciences that are not fully understood can be confusing, but my hope lies in the earth going into some inter stellar radiation that slightly changes the biochemistry of the brain, hopefully making people more compassionate and fully human. Its a long shot but space is the final frontier. P.S Beauty is far more complex than outward appearance, the challenges of life can refine character and make a individual truly beautiful and whole not just merely  “pretty”.

      • Dude you’re totally replying to your own assumptions.  I’m glad everyone here likes it, especially Tresssor who doesn’t need to hear anything further than the name calling.  Sure you’re not a lot of leftists here?   The point that Bring It is making is one I agree with.  You can forget about being responsible if you so choose, but it is not your mommy who will be unhappy.  There is a CREATOR who is not too pleased with everyone voluntarily choosing corruption.  And his post points out where all this evil comes from — “this lack of self-responsibility in all aspects of our lives”

        True, the money is worthless and criminal.  But we still accept this system and voluntarily operate under it.  If you really want to have some courage, take a step of faith and step outside the system.  Yes you will have all kinds of trouble and hardship.  Are you ready for that?  Most people are not and will always choose the easy way out.  But even though they have engineered this system for 100+ years to make it impossible to stay out of, you don’t HAVE to BORROW other people’s money to live.  That is another deception we choose to accept, because we like stuff.  Just like we accept ‘insurance’ because we don’t like to save.  Yes there is all kinds of corruption there too, but the blame lies with US (the royal us for the last century) for allowing it to get this bad.

        The deception is in putting your faith in _____ instead of your Creator.  Oh I need this and I have to borrow money to get it.   Well, did you not know the US dollar is a total scam?   If so, why did you borrow the money?  If not, you didn’t think enough and it’s your fault.  So to say he better be trolling or else he is gravely misguided…. dude I’m thinking you didn’t think that one through enough either.  But it’s OK I make mistakes in emotionally invested comments / rants on the daily, so no quarrels from me.  Just quit with the name calling, OK??

    •  Bring it. Fucking troll comment. if you can’t see past the point you made you are a fucking moron. How people in the financial/banking industry can purposely deregulate then destroy the global economy, drain 401ks and pension accounts, break monopoly laws only to have congress overturn said law to avoid any hassle, and then instead of jail or any penalty – they get TRILLIONS in tax payer money….      GO FUCK YOURSELF.

      • Killcommunism | Jul 19, 2012 at 4:12 pm |

        Fucking communist troll

        • Define communism.

          • ikallicrates | Aug 7, 2012 at 10:39 am |

            This is off topic, but I’m going to answer your question. I don’t know what Guest’s definition of communism is, since his/her comment has been removed, but here is Karl Marx’s definition:

            “In a communist society, no one would be confined to one exclusive sphere of activity, but each one could become accomplished in anything he wishes. Society would regulate the general production, and thus make it possible for me to do one thing today and another tomorrow; to hunt in the morning, fish in the afternoon, rear cattle in the evening, and criticize after dinner, just as I have a mind to, without ever becoming thereby a hunter, fisherman, shepherd or critic.”

          • If only we had sufficient supply or people consumed what was needed instead of consuming their hearts desire it would work. The problem is that everyone wants more than the other guy out of some sense of fairness. ie: I have a harder job so i should get more shit. I have a degree so im owed more shit. Unfortunately due to man’s inherent greed (especially American) this would never be a sustainable model for economic prosperity.

          • ikallicrates | Nov 12, 2012 at 5:04 pm |

            Social Darwinism used to be the conventional wisdom; because capitalism teaches us that selfish competition is the norm, among humans and animals; but scientists who actually study animal behavior, instead of merely assuming that they behave selfishly, have discovered that altruism is far more common than selfishness. It’s obvious, once you think about it. A group whose individual members are willing to sacrifice themselves for their brothers has a survival advantage over a group whose members are always quarreling with each other. And that’s as true of human society as of any group of animals. The majority of people are not selfish and greedy, do not demand more money because they have a harder job. Do you seriously believe that a corporate executive who sits on his ass in an office all day has a harder job than a policeman or firefighter who risks his life on the job? The vast majority of people are hardworking altruists who settle for less so that a greedy minority can have more than their fair share. Altruism is the norm among both humans and other animals, and selfishness an antisocial aberration unique to the capitalist society we have invented.

      • dude Tkk you are not a good conversationalist.   His point is valid as it is the HUMAN CORRUPTION at the personal level that is responsible for the corrupt government, banks, etc.  So don’t freak out on him, it only makes you look like a (fill in the blank with your unsophisticated noun).

        Yes it is true we have been sold a false bill of goods.  However it is caused by the root of human corruption, which judging by your fine choice of vocabulary words, even you yourself are not exempt from.  Just tone it down dude and try and think about the point of the author’s intention before opening your offensive mouth.

    • Marklar_Prime | Jul 19, 2012 at 2:59 pm |

       Your voluntary debt is fraudulent as the money that was given to you was created by a ledger entry in a legalized form of  counterfeiting. That newly created debt causes an increase in the money supply and results in devaluation of the currency. The ultimate source of the money then is the rest of the citizenry and foreign holders of US currency whose holdings become suddenly worth less. Every loan that is made by a bank steals value from the rest of the currency and paying back the fraudulent loan will not return the money to it’s true source. Only burning it would do that but since the money is digital there is nothing to burn. Only debt forgiveness and the elimination of the private central banking system can offer a solution even if it is an imperfect one.

    • Linsang811 | Jul 19, 2012 at 6:21 pm |

      Spoken like a true simpleton who has no understanding of the nature and complexities of such matters. 

    • I say the only fault of a debt should be that perhaps others will be hesitant to lend you money if you default.

    •! | Jul 20, 2012 at 10:14 pm |

       Whoever likes this dumb ass comment needs this link badly.
      Now educate your idiocy so we can get back to the real problem and find a solution.

  5. John_St_John | Jul 19, 2012 at 1:42 pm |

    As long as corporations and banks can dump billions into politicians pockets in the United States the people who brought about the financial melt down in the U.S. and the rest of the world will never be held accountable or face criminal charges. The SCoTUS ruling on Citizens United has turned the United States into an oligarchy and silenced the voices of the citzenry of this once great nation.

  6. Ricky Jazzercize | Jul 19, 2012 at 2:59 pm |

    I know this is a feel good story, but we have to face the fact that Iceland has a population the size of a small American city (not even a remotely major one, we’re talking like Spokane), which is why they have the ability to pull something like this off.

    • Take The Power Back | Jul 20, 2012 at 2:01 am |

      Iceland is a microcosm of the USA. More people (population) = More rocks thrown!!

  7. Marklar_Prime | Jul 19, 2012 at 3:01 pm |

    Jail the bankers and dismember the Fed or live in slavery. It’s really quite simple.

    • Camron Wiltshire | Jul 19, 2012 at 3:03 pm |

      Completely agree.

    •  Seriously if protesters started throwing rocks at the White House and an Iceland solution was even hinted at occurring, the Feds mercenaries would open fire and kill as many people as necessary to put an end to it. Then blame the tens of thousands of deaths on armed protesters all apparently brand new unfired weapons, no problem loyal to the bankers corporate mass media would explain it all away.

    • So true. It’s coming soon, by consent or conquest. I’m giving it two months before the rocks start hitting the white house

  8. emperorreagan | Jul 19, 2012 at 3:05 pm |

    The US has a different plan, as evidenced by the heavy focus on domestic surveillance.

  9. Db8Educ8U | Jul 19, 2012 at 5:14 pm |

    I don’t know about any of you, but I could not have started and built my business without a loan from the bank.

    • OneOfMany | Jul 20, 2012 at 10:27 am |

      @Db8Edu8U – Spoken like a true slave…thank you master may I have another!

      In a world with reasonable regulation enforcement you would be able to save some wealth early enough in life to spend the bulk of your life working for yourself.

  10. This isn’t about Banking and this isn’t about the peoples unprecedented Consumption. This is about fighting back against a financial Coup d’Etat, a machine that extracts vast amounts of wealth and power from otherwise simply naive citizens participating in the most basic of and most essential financial practices all over the world.

  11. IrishPotatoGun | Jul 19, 2012 at 9:29 pm |

    Isn’t there an organization that is supposed to doing this in the US? Oh yeah, they were having sex and doing drugs with the bankers instead I forgot.

  12. Please name one banker in Iceland that has gone to jail! One!

    A few young people threw some rocks at police before a lot of people stepped in between to shield the police. A bunch of eggs were flying though :)I think there are lots of intelligent people that frequent this site, do a google search or something before believing these LIES. 

  13. Ceausescu | Jul 19, 2012 at 10:49 pm |

    Apparently, this is all propaganda from a corrupt government.

    This is what Icelanders are saying anyway…

  14. Like someone said – If you rob a bank, you go to jail, but when a bank robs you..

  15. One thing I’ve noticed is that many so called “Negative” aspects of any society often have a positive reason for them.

    In India, they didn’t eat cows “because” (for whatever religious reasons) the cows living provided far more benefit to them being used for just livestock.  And the “untouchables” could eat them when they died, and they needed the protein badly.

    Likewise, prostitution, black markets, gray markets, slums, have a lot of things that benefit society more than they hurt them even though only seeing the surface it’s hard to make this argument…

    Well, for centuries banking was only allowed to Jews.  Simply put, usury was bad and every prophet had spoken against it, but hard to advance society without loans/banking not that any prophet cared about that but kings do, but when anyone “Wins” the money game society faces collapse.  So Jews were allowed to be bankers and lenders, but after a time they got too successful, and thus the local lord suddenly listened to the crazy who claimed she saw them drink babies blood every other week…  A bit of torture, a public bonfire, everyone’s debt forgiven.  Then after a while let some more in and start up again… But it’s … uh…  “non-PC” to just do that today…

    Should be a regular “Shake up” of the financial system.  Mandatory Rico prosecutions of the top 10 performers, heavy penalties for those that are found breaking any law beyond jaywalking or the most minimal zoning/health law.  Let the bankers not caught up in the sweep reap their fellows misfortune and fatten up, the next “Sacrifice” is a decade away…more or less…don’t want to lose but don’t want to be more than second from last loser…  Nothing on Jews by this proposal, of course, if the “Top Ten” happen to be over-represented, well that’s just coincidence, it’s worshipers of MONEY we target;-)

    I’d time it 14 years, give or take 7 depending on both the economy and a literal roll of the dice.  Special prosecution team with a high salary and strict laws forbidding any extra money for any reasons, they win the lottery they donate it to a charity they don’t control.  And watched by neutral Swiss monitoring team, to be in it they sign an agreement to be executed for treason should they be found taking bribes.  Lots of “Whistleblowers” who are very competent people but pushed out by “Good Old Boy” networks who’d sign up in seconds to fill such a job.  Untouchable, feared, a special place of responsibility, comfort and stability.  That’s actually worth far FAR more than “14 mansions and 25 yachts”.  The richest and most powerful would look at you with fear in their eyes while the common man would idolize you.

  16. we  could  send  them  some  tall trees  to  decorate  ..  I  am  sure  its  more  than  90

  17. jackiedoss | Jul 20, 2012 at 10:13 pm |

    Bank execs weren’t jailed because the US Government forced them to do subprime mortgages. Because they’re SO freakin much smarter than economists.

  18. Perrygrimm | Jul 20, 2012 at 10:19 pm |

    Hopefully We Are Clever Enough In The West To Follow Suit With Iceland Before It’s Too Late

    •  That would be up to us citizens to do this.  it can be done, we just have to band together (all 100+ million) and stand up to them as one, and say no more.

    • ikallicrates | Aug 7, 2012 at 10:46 am |

      Alas, it is only our elite who are clever . . . clever enough to rob us and get away with it . . . and not because they are clever, but because we are stupid. 

      • very true, we have been bred to be stupid.  Engineered for compromise, conformity, assimilation, submission, ignorance, and hypocrisy by the elite (read:lucifer).  Of course we still choose to remain that way…   stupid isn’t necessarily void of a 4 year validation of your ability to regurgitate, but rather the willful ignorance of those that choose to not desire the Truth.   All it takes is one second to wake up and see what’s been all around you.  But they get us cozy, fat, and happy, and we will trust anything they say, just don’t take my 7-11 away!  I pray the Lord’s will happens quick, do not dilly-dally Lord, hasten your return!  I patiently await the next great depression so we can quit this nonsense of thinking we don’t need God.  How self absorbed and foolish are you waiting for us to become?  Just drop the hammer on all this please.  That’s why they put that thing in the constitution that says ‘don’t elect foreigners as your president’… they knew that would be the final nail in the coffin.  How do you remain optimistic in the face of the fact that we are indeed doomed… this country is full of buffoons.  I better stop typing now.

        • Love this stream of consciousness rant ( I mean that in a positive sense)  Hope to see more of your posts and perspective.  

        • ikallicrates | Aug 10, 2012 at 11:53 am |

          How do you remain optimistic in the face of the fact that we are indeed doomed… What makes you think I’m optimistic?

  19. The Mighty Cain | Jul 21, 2012 at 3:11 pm |

    I believe in individual responsibility, so debts volunteered into should be repaid however with no accrued interest and have the option of very very low interest free payments. However I also am fully aware that the Banks have created the economic crisis in it’s entirety so a very strong argument can be made to force these same Banks to forgive many of the debts of the people. The fact is that the people actually are paying the banks back on their loans by bailing them out and taking on their debt repeatedly. And then the banks make even more money by charging interest on loans. And taking direct profits on money collected by the IRS. I am all for personal responsibility, but making a slave be greatful for his chains is a little bit too much to swallow. I say hang these criminals and END THE FED and help other countries end their Central banking criminal institution.

    • Madison Paige | Jul 27, 2012 at 2:12 pm |

      No. A 900 square foot house with a falsely inflated value of 1.3 million dollars should NOT be repaid. How on earth is a house worth that then two year later it’s worth 250K? Not possible. It was all a sham and the people who bought should not have to forced to pay for something that was overvalued. You want to make the house worth 250K? Fine. Then the loan value is 250K. period. You don’t get to force someone to pay 1.3 million + interest on a house you NOW tell me is worth 250K. Fuck that. There’s no “individual responsibility” shirking going on there.

      • the problem (aside from your not-creative use of the F bomb) is that you think you need a place to live that costs $250,000.   If you have $250,000 saved up to drop down, go for it.  Otherwise start saving or move to some place satan hasn’t already fully corrupted.  Yes there’s many other problems with the money too, but this one is a house or a mental problem, not a money problem.

  20. Iceland seems to be the only country with enough of a backbone to stand up to the bankers… and possible the only one no longer in collusion with them.

  21. Hey, let’s move to Iceland!

  22. first stop the lawyers. then the bankers.

  23. Littlemisteramerica | Jul 24, 2012 at 10:22 am |

    The more bailouts the executives get, the more they are rewarded with money for devaluing ours- the less theirs is worth and the harder they will inevitably fall. Let them collapse under the weight of the debt notes they proudly hold up. We have strength in numbers. They will be thrown to the wolves.

    • stick it to them where it hurts, eliminate your ‘wages’ and your ‘tax liability’.  Work directly for food or other trades.  Barter with your neighbor and help him rebuild when his barn burns down. We have totally forgotten what it means to be ‘human’, a neighbor, or a community.  THAT is the real problem root we are seeing flower all over the place (aside from all this concrete and asphalt).

      We do have strength in numbers, but this county has been corrupted and the majority is wrong.  Move to a small town and start taking care of yourself.  This country is not supposed to be a haven for ignorance and obesity.  All these problems we are engineered to get angry about are really symptoms.  Repent or Die!  (I did like your post even if it doesn’t sound like it! =)

  24. When are you people going to talk about how the REPEAL of the Glass-Steagall Act which almost destroyed this country?

  25. johnclements | Jan 30, 2013 at 9:29 am |

    The problem
    is the majority of Americas have
    become morons, who are more interested in who wins the Super Bole, just like
    the morons sitting in the Coliseum back in ancient Rome.
    Apparently even if we do know our history, we are destined to repeat it!

  26. Put these animals in prisons for the rest of their lives !!!

  27. So who lost the $85 billion dollars? Somebody did. I wonder if anyone asked how THEY feel about this miraculous recovery.

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