The Economy of Iceland: How Did Iceland Recover?
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- Опубліковано 30 вер 2024
- Iceland's Economy had a banking debt ten times larger than its GDP.
Iceland was that one Economy which went left when everybody else went right. Whilst most thought the banks were too big to fail, Iceland thought they were too big to save.
It let its largest banks go bankrupt and threw dozens of bankers in jail.
And yet despite its unusual approach, its Economy recovered. Going on to enjoy a decade of unbroken economic growth and high standard of living.
But why did an island just outside the arctic circle have a financial crisis?
What strategies did it deploy to rack up such monumental debts?
How did it recover?
And does its future rely on impressive tourist growth and crypto currencies?
#Iceland #IcelandicEconomy #Economics
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From where do u find tooica
From where do u find topica
Letting bsnks and businesses fail is part of why we need governments, to throw out the garbage and rebuild responsibly.
Iceland went from fishing to banking and survived. We all should learn from them.
And won a cod war/s 👍
@@AltSimplified *Screams in British*
So is Singapore.
Start fishing you mean?
@Majed Talib less than 400,000
"And then those Viking explorers decedents discovered an unlimited money fountain... but it was cursed!" Sometimes reality beats myth.😂
im icelandicand this whole vid is mistaken.
The real reason is because Mc'donalds left iceland in 2009
Facts is that, the poverty rate in Iceland is one of the best in the world. ... The total poverty rate ratio in Iceland is 0.065. Many of the other Nordic countries, such as Norway and Finland, also post very impressive poverty rates. Iceland's unemployment rate, another key economic indicator, is also very low.
Australian stock exchange market should be a boom with this ratings.
one thing we need make sure to be conscious of is that we're in a world of uncertainty. There is a great extent to being diversified. it doesn't stop at just various financial securities, it goes as far as diversifying innovations. It will give chance in creating more profitable options.
one essence I trade and invest with Anmol Singh, is he doesn't have trouble converting registered users to paying investors.
Given the pressure to earn enough to make ends meet, you would think that low-paid workers would be clamoring for raises. But this is not always the case.
outstanding is the word i can use. This outlier has the best investing system as far as I can tell. His system of approach and strategy is light years ahead of the rest.
So, Iceland's banking sector failed because they did it DIY instead of getting foreign experts? And just where would these foreign experts who would manage things better come from? The US banking sector which played a large part in causing the 2008 Great Financial Crisis? The over-leveraged European banking sector which needed to be bailed out during the European Debt Crisis? I'm not convinced it would have made a difference whether Iceland started banking themselves or invited foreign bankers, they would have made the same risky bets and burned themselves in the process. The one good thing Iceland did that the US and Europe failed to do was let the banks taste the result of their own hubris.
That aside, I still like the rest of your presentation, so have a like.
I think it has more to do with impartiality. Those who decided the buyers of the state banks during privatisation had close connections to the buyers. It may also have been better to have Swiss bankers steer them for instance as the managers were experienced businessmen but not bankers specifically.
I think it's just more of a result of Iceland succumbed to common financial failures we see all around the world:
Creating money out of nothing
Very high spending sprees
Internal consolidation reminiscent of oligarchs
But because they did these issues themselves without foreign experts they were also in a position to greatly punish the offenders because there was no foreign powers to come to the defense of those responsible for the national financial mismanagement
In essence they created their problem and solved it themselves. Which is admirable I won't deny, but keep in mind that because Iceland is such a small nation and their economy so loosely tied to the global trade they were in a better position to allow for a full failure of their respective financial services
It's unfortunate that the US and it's entire economy is so massive that it can't afford to completely fail like Iceland did
because the global reach the economy.
Iceland? more like Niceland
Top chat!
Can you do Cambodia 🇰🇭 please? Your work is really good!
I have so much love for Iceland 😍🇮🇸
I feel like you can catch up with economics explained in like less than 1 year 😊
EE is good but there's room for more diverse view points. It would be great to have a different perspective as EE is unhelpful in the way he doesn't fairly represent other viewpoints because of his personal ideological assumptions.
@@joythought Interesting, what are his ideological assumptions?
Could you make a video talking about how Europe developed so good and reached a level of welfare that is admired all around the world?
I still don't understand why you don't have more subscribers. Your videos are so good!
Thanks Luigi! Haha I'm thrilled with the 45k tbh 👍 hope to see you around for future videos!
Change ur name to Alteconomics or similar which has economics.
Then the algorithm could support you..for more viewers
Congratulations to Iceland who managed well their banking system! Not as my country (Cyprus, in case you wander). Could you make a hypothetical video comparing what would have happened if Greece never left Drachma? And what are the consequences if Greece leave now? I think it would be a fascinating story!
P.S. you have just earned a subscriber, a well made video :)
What a quality video ! Could you make an video about the economy of Mexico? How is it possible that Mexico is not as rich and developed as the US, while having the most FTA and the lowest taxation of the OECD.
Would be very interesting
Definitely one we're looking at soon!
Greece: Write that down! WRITE THAT DOWN!
@husky11191993.... Sadly Greece does not have its own currency so the Icelandic solution does not work for Greece. The Greeks could solve their problems by ditching the Euro in favour of a return to the Drachma. This would create enormous instability for both the Euro and massive devaluation of the Drachma but it would work if the Government had the intestinal fortitude to do it which they don't. So the Greeks are beholden to the whims of the Germans and French the largest economies using the Euro. The Germans and French benefit from smaller countries financial mismanagement which causes an artificially depressed level of the Euro benefiting their exports.
Next up: Iceland post Covid-19.
In a perfect world this would be the way foward for a country like Lebanon.
Lebanon has no hope until they reform their government and politically Isolate themselves from Iran and Saudi block...
well Lebanon has different package to bear - civil war was not long ago and gov is composed to those ppl and its small too but due to bad luck - namely
geopoliticks location play big role here.
@@hoponasu2471 yes..geopolitics is one of the main reason for their downfall...even before Arab Spring their growth is above 5% per year and hope they come back from bad time..
THE RICH GET RICHER BY SPENDING LIKE THE POOR AND INVESTING AND THE POOR GET POORER BY SPENDING LIKE THE RICH AND NOT INVESTING.
SAVING MONEY IN BANKS IS LIKE MANAGING YOUR POVERTY. MANAGED POVERTY IS STILL POVERTY NO BANK ON EARTY WILL GIVE YOU INTRESTEDED RATE MUCH HIGHER THAN YOUR INFLATION RATE. INSTAND IN YOUR MONEY IN FOREX, BITCOIN, REAL, EASTATE, DON'T SAVE FOOLISHLY. SAVE YOUR FURTURE INVEST WISHLY
This is very correct
To the newbies, you should also note that this data is worthless without an existing understanding of data analysis, translation and interpretation, so a fundamental comprehension of these concepts is necessary in order to develop your own strategy and techniques.
Trading systems allow you to limit the factor of emotional influence on decision-making, as well as to give the trade a certain degree of systemic character.
Bitcoin and Forex trading it's a trading platform were you invest with a minimum capital, you predict the outcome of foreign currency if they will either fall or increase, it's like you are placing a bet.
You made a really good point about Iceland’s currency. I was very surprised that they are free floating and not pegged. I am also suprised Denmark follows a pegged system while other Nordic neighbors float their national currencies. Also prior to the euro crisis I didn’t know why Switzerland pegged their francs to the euro. Yes Switzerland has the largest reserves of foreign currencies and can afford to peg however the Swiss franc was already regarded as a hard currency so a peg to the euro was unnecessary.
economics explained vibes
Great Content As always..... Keep it up
Thanks 👍
GOOD FOR YOU ICELAND!!!! MAY YOU ICELANTICS HAVE MANY MORE SUCCESSES!!!!!
Exporting fish?
GME 🚀🚀🚀
It absolutely can work for larger economies. However, it will be much more destructive and take much longer. But in the long run the world will be better for it.
last time I thought about recommending you to create a video about Iceland but I left my idea...
You read my thoughts, did it without my comment 😅
Hello, blogger, do you have a real estate group? Can I have it? I also study
Hello sor iam fitter i need job your country
10:24
Iceland gives priority to domestic creditors in bankruptcy....it then asks for more money from foreign creditors. Once bitten, twice shy?
Yeah I guess the new money from foreigners was under tighter conditions than the original foreign money was. Don't want to fall for that again!
I wonder how Iceland's economy is doing now during COVID19 crisis as I presume they are (were) still pretty dependant on tourism?
It's picking up very fast again. The center bank had already steadily raised interest rates. The real estate market was a key economic driver during the the tourism shutdowns.(I'm from Iceland)
I didn't know we were broke
Efficiency, ie, cutthroat deals, murder and dirty deals.
8:45
Actually my question was why are loans inflation indexed but not wages and salaries? Fairs fair.
In many places here in Europe, minimum wage is inflation indexed (www.ecb.europa.eu/pub/pdf/other/mb200805_focus05.en.pdf)
I don't know about Iceland but I think wages are not so bad there.
That being said, I agree with the way they handled the crisis, no money for thieves!
The economy of Romania?
Sweden next!
Hoping to make sweden soon 🇸🇪
Love Iceland.
To bad they dont use the Euro.
They deliberately stayed out of the euro. That's part of why they're doing so well again.
i love the abundance of cheap generic b roll lol
Is this the way America will go?
Hey I really enjoy your videos , and i've got an idea . You should do "The Economy of Romania". I would love that video ;)
CAN YOU DO A VIDEO OF HOW NIGERIA CAN GROW IT'S ECONOMY?
Please don’t let them expose Nigeria’s dirty linen to the ŵorld to see,p. How a naturally wealthy country has superseded India with the highest number of people living in extreme poverty = 88 million.
what was said at 10:15?
so basically european and Anglo American Nations never get in trouble no matter how much debt they have or how worse their economy is , the problems are only made for non european non english speaking developing countries , when we get in trouble they will never ever stop speaking about it , but when it comes to iceland or ireland , what happen to the debts ? it`s all gone overnight and they are super rich now , ridiculous .
Iceland the world's longest running uninterrupted democracy
The Althing
'the importance of this should not be underestimated'
OR
'the importance of this cannot be overstated'
Around 3:35
good content
The most important factor that helped them recover: one of the least populated countries on earth = lesser mouths to feed.
Any news as to how Iceland will fare the hyperinflation that has already started everywhere else?
Sorry to burst the bubble only 2-3 bankers got a short prison time.
Next is the economy of Greenland.
How about WW2 my PM?
@@luishernandezblonde I had an empire okay, so I wasn't a failure.
So informative. Thank you!
"Low corruption" Hahaha, no.
Greed and corruption...
Thank you for sharing
Help me India
Back from roke
France next ?
Waiting for ur analysis on pakistan...thanks
Hoping to 🤞
Interesting
do canada
Wow
I have no information but I seems ecb it could stop this if it wanted.
Will you remake video on Bangladesh because your most viewed video is on Bangladesh?
Bangladesh and Iceland are having the exact opposite problem despite having almost similar area. 160 million versus 350,000. All of us developing Asian countries need to learn to control our population before it is too late.
@@utkarshg.bharti9714 I think Bangladesh is already below replacement level. Reducing the population has its own problem of having too many old people who have to be supported by relatively few young people and tax payers
Iceland true Vikings
Can you do UAE pls? Thanks
Yesss, finally!
"Gender equality" is a value judgement.
Iceland is smaller than Tennessee, and therefore not a country.
That said, I think I like the way it handled its banking collapse - let the overextended institutions fail, and prosecute the criminals responsible. Prioritize the holdings of the citizens first, and let the big money eat the loss. I'd like to see more of that happening with financial institutions, especially in the US - a failed state or irrevocably compromised by Russian saboteurs, take your pick.
Was that a joke? If iceland were a province of Canada like Tennessee is a state of US, then okay, but iceland is a sovereign country, Tennessee is not. Size doesn't matter with nations. Look at singapore. 😉
@@리주민 Singapore is a city pretending to be a country
@@ubomninomen7765
Well the international community, including the UN disagree.
I guess by your logic, you're a bot pretending to be a human. 😁
Why must a country be larger than Tennessee? Seems like a strange measurement.
@@staropramen478 Yes, it is completely arbitrary and for entertainment purposes only. TN's population is a good representation of an average-size state in US, both in terms of population and geographic size. One could argue that nothing with a smaller population than Wyoming should be considered a country, but that would just be silly.