Well done Iceland

This is exactly why we are in this economic crisis.

Why did the citizens of Brian and Holland invest in Iceland? Because they were being offered a much higher yield, plus they took on the extra currency risk. Of course, usually, in a normal world, a higher yield means higher risk. Higher risk means that there is a possibility that you could lose money. But of course this isn't a normal world anymore.

Why would the people of Iceland want to take on 18,000 of debt for each citizen for the benefit of foreigners who didn't properly research the risks they were taking?

And what is the benefit of entering the Euro? Could it be that the government would be allowed to take on as much debt as they see fit, knowing that this would not result in the collapse of their currency and perhaps a nice bailout from Brussels?

We are entering a world of polar opposites. On one side you have the politicians and the elite who are pushing for more globalization with increased global regulations, and on the other side, you have the citizens including the people of Iceland, and the tea-party movements who are pushing for more localization, wanting to keep their culture and their independence.

If I have to make a prediction for the underlying theme in the next decade, I think that this will be the driving issue.


reportonbusiness.com: globeinvestor.com - Iceland in crisis after rejection of bill