Thursday, July 19, 2012

Icelandic Anger Brings Debt Forgiveness in Best Recovery Story

Icelanders who pelted parliament with rocks in 2009 demanding their leaders and bankers answer for the country’s economic and financial collapse are reaping the benefits of their anger.

Since the end of 2008, the island’s banks have forgiven loans equivalent to 13 percent of gross domestic product, easing the debt burdens of more than a quarter of the population, according to a report published this month by the Icelandic Financial Services Association.

“You could safely say that Iceland holds the world record in household debt relief,” said Lars Christensen, chief emerging markets economist at Danske Bank A/S in Copenhagen.“Iceland followed the textbook example of what is required in a crisis. Any economist would agree with that.”

The island’s steps to resurrect itself since 2008, when its banks defaulted on $85 billion, are proving effective. Iceland’s economy will this year outgrow... (CONTINUE

Friday, July 6, 2012

The Folly of Rio

This week’s Earth Summit will try to tackle global warming. Meanwhile, poor people are dying from air pollution and dirty water. Tens of thousands of people are gathering in Rio de Janeiro for this week’s  U.N. Earth Summit. The participants, ranging from weary politicians to enthusiastic campaigners, are supposed to reignite global concern for the environment. Unfortunately, the summit is likely to be a wasted opportunity. The United Nations is showcasing the alluring promise of a “green economy,” focused on tackling global warming. In fact, the summit is striking at the wrong target, neglecting the much greater environmental concerns of the vast majority... (CONTINUE)