Shrimpsvoices

Can a country go bankrupt.
Morally bankrupt a la Zimbabwe yes but not a member of the EEC, surely.

Aspers wrote:Can a country go bankrupt.
Morally bankrupt a la Zimbabwe yes but not a member of the EEC, surely.

Iceland aren't in the EU. The banks that have gone under owe more than the country has in total, so the government can't prop them up or bail them out. I don't know where the country goes next, I'm sure as hell glad I don't live there! How are they going to fund the hospitals or road building? Personal income tax 38%. If people won't put money in Icelandic banks once this crisis is over (would you?) and their businesses have no where to borrow from, what then? Income tax up further? Already high cost of living, so rampant inflation is the last thing they need. A whole country going down the pan because their government have handled things badly. No gloating here, if it all goes pear shape here on the IoM we're screwed too but at least *so far* our government appear to be doing things as well as they can. Still not nice reading about people who've lost their life savings when the Icelandic government sucked all the cask out of KSF Bank on Thursday. One couple are emigrating to Australia. Sold their house and put the cash in the bank while they moved and find somewhere else to buy. Bank crashes, they are now in Aus but with no money.