Friday, February 17, 2012

Greece Should Look To Iceland

Here's an interesting little snippet from the BBC...

Iceland is safe to invest in again, according to Fitch, which has upgraded its credit rating three years after its economy spectacularly collapsed.
It's almost text book stuff. Economy collapses under a mountain of debt. Country living beyond its means. It's the end of the world etc etc. Currency collapses and no one is willing to touch Iceland with a bargepole.

With a collapsed currency exports are cheap and start to pick up. Because of the disaster the government is even allowed to borrow and delays implementing the kind of austerity being foisted on the Greeks.

So, remind me again why Greece should remain in the Euro?

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