re: Would We Have Been Better Off If The Gov't Let The Banks Bottom Out, Not Bailing Em Out?

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Iceland let the banks fail, prosecuted the bankers, and bailed out the depositors. Their unemployment rate peaked at 6.3%.


Could this absolutely not have worked here? I mean, if the government is gonna bail somebody out, shouldn't it be the people and not the companies? Shouldn't the government guarantee that we get our money back instead of the banks?

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That 6.3% number is wrong. It peaked at nearly 8% and only got back to that around 2012. Iceland was a shite show from 2008 to 2010.

It's also a country the size of Lafayette, Louisiana metro area, not the single largest economy in the history of the world, the global financial center, and tightly tied in with the rest of the developed world. It's comparing apples with elephants.