Land of Fire and Ice
June 2nd, 2010Just returned from a visit to Iceland, …hence the radio silence. Was there for a few days of work, followed by a few days of pleasure.
What an amazing place. The country is absolutely stunning in its beauty. And the people are absolutely wonderful. I can’t wait to go back.
That said, it’s sad, really, that the majority of Icelanders don’t seem to understand the full gravity of the debt problems that they currently face (for background see here). If they decide to go along with the current debt repayment plan they will have to accept years of sub-par growth at a minimum, and potentially, live through a few years in which they teeter on the verge of default. Refusal to pay now, however, could quickly propel Iceland into economic crisis as foreign credit dries up and hard currency becomes scarce.
What a mess!
Personally, I think that in voting down the most recent Icesave Referendum, Iceland is trying to play hardball with the UK and the Netherlands, hoping it will lead to a more favorable negotiated settlement while convincing them to shoulder some of the burden for the outstanding debt.
I hope they (the Icelanders, Brits, and Dutch) can work it out.
If not, that would make my movie choice on the flight over somewhat ironic. I found it interesting that Iceland Air would even offer “Wall Street” for its passengers as an in-flight option; but ironic how, for Iceland, Bud Fox’s sales pitch touting “extraordinary opportunities emerging in the international debt markets” might desperately be put to use.
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