No Reason Why It Couldn't Happen Here

Save the moral cowardice of our political leadership class:

Iceland is a living experiment in what can happen when a country forces its financial firms to go under, rather than bailing them out, as much of the rest of the world did during the global financial crisis.

In October 2008, all three of Iceland’s major banks collapsed. None failed more spectacularly than Kaupthing . . . At one point, it had a balance sheet four times as large as the annual economic output of the entire country. Last month, four former Kaupthing executives were sentenced to multiple-year prison terms.

Sure, it's a small country and apples-to-oranges, but for what it's worth, they allowed their banks to fail, and their world didn't go to hell in a handbasket. Yeah, they had high unemployment for a time---but so did we, and unlike them, we still do now.

---Baron V