The International Monetary Fund (IMF) sent a message to the Icelandic government in April last year saying how important it was to react effectively against the problems of having a too-big banking sector with very light regulation in the country.
mbl.is reports that this information came to light in an interview with Ingibjorg Solrun Gisladottir, Social Democratic party chairman, in a television interview last night.
Gisladottir said that the Central Bank of Iceland and the Financial Supervisory Authority did not put enough energy into responding to the subsequent government warnings. Gisladottir said that reports by professional economists, including from the other Nordic countries, had been building up prior to the economic collapse warning of the significant problems in the financial sector. She goes on to say that she, like everyone else, did not expect the near total banking collapse that eventually took place.
I am trying to grasp this:
Ingibjorg Solrun Gisladottir says that “she, like everyone else, did not expect the near total banking collapse that eventually took place”. To put it with her own words, she “did not put enough energy into responding to the subsequent government warnings” BUT she now intends to run for parliament again.
What for?
To help the country like she already did?
@ Lord of the rings: Exact my words.
And where is the promised changes already?
Icelanders holds a strange kind of obedience and believe in the old politicians, although Iceland as a whole only can recover when new/young politicians have gotten into the parliament and replaced the old dull incompetent faces (all of which, are to blame for the crisis, – as we can see, thanks to Gisladottir)..
But as said, the mentality in Iceland are far from this, and people will much rather complaint and, by the help of ressentiments, hold themselves in a mental state of “bad faith” instead of taking the courage to think something new.
It is a devilish dilemma: on the one hand there is such a thing as ministerial responsibility and she should therefore not come back in any future government, but on the other hand there is a clear lack of political leadership talent in this country(or at least a lack of politicians that are truly independent from other interests). Simply replacing the old with new, young people is not the answer. This country needs experienced skillful people to steer it through this crisis.
Her decision to stay on as party leader but to opt out as PM is a sensible one, yet perhaps it would be ‘cleaner’ if she would have ruled out to become a minister at all and focus on leading the party rather than governing the country.
Lord of the Rings said:
“I am trying to grasp this:
Ingibjorg Solrun Gisladottir says that “she, like everyone else, did not expect the near total banking collapse that eventually took place”. To put it with her own words, she “did not put enough energy into responding to the subsequent government warnings”
——————————————————–
She was in the government, what do you think she should have done, put more energy into warning herself? :)
She says that the FSA and the CBI did not heed Government warnings.
The CBI say the government did not heed the CBI warnings.
Who do the bankers blame? the competitive nature of deregulated banking?
Nobody is going to willingly cop this plea ;)
Apparantly the only warning in Iceland that you just can’t ignore is the vanskilagjald.
Here’s how they should fix the economy, cease printing of the Krona until value goes up. Then, back up each krona with 1 kilo of gold. REGULATE, REGULATE, REGULATE!!!!!!
Won’t work Max.
Most of the problem comes from the glacier bonds, which are electonic money and already issued. So ceasing the printing of paper money (assuming they even are) would have little effect.
To back the currency with gold they would have to buy that gold. Which would mean more state debt.