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**olivelappers** · 02-27-2010, 10:15 AM

I'm wondering how this works. Icelandic banks failed and the governments of GB and Netherlands saved depositors in their respective countries.

Why would they then expect Icelandic taxpayers to pay them back?

When the banks failed, the governments stepped in to guarantee deposits. So when the British government bailed out RBS, Northern Rock and Lloyds Banking Group, it safeguarded all investors. It didn't go "OK, we'll safeguard the British investors, but no foreign ones."

Iceland, however, wants to play the "let's get out of safeguarding the foreign investors who have built our economy" game. If they do that, they'll avoid the bad austerity measures they'll have to take, but they'll be financial outcasts.

02-27-2010, 10:15 AM	#6
olivelappers Join Date Oct 2005 Posts 510 Senior Member	I'm wondering how this works. Icelandic banks failed and the governments of GB and Netherlands saved depositors in their respective countries. Why would they then expect Icelandic taxpayers to pay them back? When the banks failed, the governments stepped in to guarantee deposits. So when the British government bailed out RBS, Northern Rock and Lloyds Banking Group, it safeguarded all investors. It didn't go "OK, we'll safeguard the British investors, but no foreign ones." Iceland, however, wants to play the "let's get out of safeguarding the foreign investors who have built our economy" game. If they do that, they'll avoid the bad austerity measures they'll have to take, but they'll be financial outcasts.
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