The London School of Economics professor and Iceland expert, Robert Wade appeared on Iceland’s most popular political magazine programme Kastljos this week.
In the nearly 13 minute-long interview, Wade expressed his frustration that his (and others’) dire warnings on the Icelandic economy were not listened to over recent years. He said that the imbalances in the Icelandic economy had been bigger than almost anywhere else in the world, and that that was especially dangerous at a time when the entire world economy was entering a severe slowdown. “People, on the whole, were rather dismissive of (my) argument, saying that I was just being alarmist,” he said.
While Wade asserted that he supported the privatisation of the Icelandic banks in the first place, he described as “a mistake” the way the government went about the process, and the people who ended up in control.
“It’s not just a matter of what the rules are; it is also a matter of how the rules are implemented – or not implemented,” he said, claiming that the Financial Services Authority had acted more like the banks’ aide than their regulator.
With regard to the future, Robert Wade was adamant that the worst is yet to come. He foresees even higher unemployment and a time when pension funds feel the pressure to cut payments. He also believes that there will be another global tipping point (like the Federal Reserve’s decision not to save Lehman Brothers in September) some time between March and May.
It is Robert Wade’s opinion that the Icelandic government can effectively prepare for these shocks and set the country on the road to recovery by setting aside party politics and taking big steps right now, while there is still time. Whether they take his advice remains to be seen.
The interview can be seen in full in English here for seven days.
YES, AND THE FIRST MOVE THOSE POLITICIANS AT THE GOVERNMENT NEEDS TO DO IS TO RESIGN FROM THEIR POSITIONS AND CALL FOR NEW ELECTIONS ASAP.
IN ANY DECENT COUNTRY THOSE PEOPLE WOULD BE IN HANDS OF THE JUSTICE
In which country has that happened, my dear Viking?
yeah, politicians suck in every place of the world :)
I would really like to know what Wade thinks about the IMF loan Iceland is probably going to take now?
IMF requires 18% rents for the loan and is known for doing more harm than “help”.
I have been searching on websides, without any luck.
If anyone here could inform me I will be very thankfull.
I think all those politicians have to be sued to court, let them explain to a Judge why they practically messed up the Icelandic Economy and tarnished the image of Iceland with their greedy, corrupt, twisted, dishonest, worthless, tactics. I bet heads will roll then,…. and the hidden bitter truth will be out in the open….It’s a pity that those politicians will just go free like that, they broke the law, and the cabinet dissolved, they ought to be taken to trial(s) in court.
I bet they’ll be looking forward to living of their loot probably in an account outside Iceland, while the Icelanders suffer in anguish. Even if you bring a government from Heaven and you have someone like oddson in the central bank, then it’s back to square one, it’s like taking one step forward and fifty steps backward.
Please try to stay independent and do not be persuaded to join the EU. Most ordinary people in Great Britain want to leave it. The EU is a communitarian nightmare that is destroying everything here. You need to find out about a corrupt organisation called Common Purpose.
http://video.google.com/videoplay?docid=-1405535197028538552
http://nord.twu.net/acl
>IMF requires 18% rents for the loan and is known for doing more harm than “help”.
You may be right, but I think that you’re confusing the current interest rate of the central bank with that associated with the IMF loan.
I’ve not seen any reports on the interest rate attached to the $2.1b phased loan.