Iceland Banks were very similar to Singapore Banks, they attract a lot of foreign money.Many European Banks bought Bonds issued by Iceland Banks before they collapsed, if the Iceland President dun let the Banks in his country to fail, he's a fool, they are foreign money after all. And being the odd one not part of Euro, Iceland could easily devalue its own currency, which at one time devalued by half, with interest rates at a all time high 18% for about 6 months.So, let the Banks fail, and start on a clean slate allows Iceland to recover fast from the ashes.Let's talk about Singapore's local Banks, now who is the largest shareholders of DBS, and of OCBC, both connected to the Govt, how could our Govt allow their own Banks to fail. The odd one, UOB, is lucky to be able to ride on DBS and OCBC's protection, not likely to fail also.Also, Iceland differs from Singapore, the latter is a financial centre with many of the world's Foreign Banks operating here, woe betide Singapore if Banks operating here are allowed to fail.Let's turn attention on Ireland who is part of Euro, the Irish Govt nationalized all the failing Banks, except Bank of Ireland, (an American pumped in money to keep this bank afloat), but still it's about 90% in Irish Govt's hand. But Ireland can't use the devaluation route, nor could she print money, thus the economy dun recover as much as Iceland.And Ireland is bogged down by a Socialist Law to protect mortgagees, Banks can't foreclose mortgages easily, so the homeowners could still continue to stay in their homes, until such time they could continue paying their mortgage loans. So the people and the economy dun suffer too much, only the Bank shareholders became paupers overnight when the Irish Govt nationalized almost all the country's Banks.
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