Hobbit@Law

Looking carefully at that which is unseen.

Daily Archives: February 21, 2012

Thinking about: National default

Bankruptcy is an ugly word – admitting you cannot pay your debts and going to have to default on payment to your creditors, people who loaned you money in good faith, presuming that repayment would be forthcoming. Whether due to unforeseen events, or just due to overspending, failure to repay sucks.

There is, however, something worse – and that is forcing OTHER people to repay YOUR debts, at gunpoint. The point of this? Compare and contrast what is going on with Iceland today compared to what Greeks (and Irish and Italians and Portugese and Spanish) are being told they need to do.

To the extent that bankers and investors (a new way of describing “speculators” or “gamblers”) lost their bets, that should be their problem, not the problem of the people who happen to be living where those bets were lost.

It will be interesting to see if the Greeks take their cues from Ireland – or Iceland.

Got popcorn?

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