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Iceland President Olafur Ragnar Grimsson on the recovery of the country’s economy.
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We think our banking crisis was bad in 2008.
It was but try Iceland's that country's three largest banks.
Failed you heard me right no bail out.
No TARP they just failed -- banks took the same leveraged bets ours did but they're government took the opposite approach of the US so -- the world come.
Hardly so David was claim is in Davos Switzerland at the World Economic Forum with a leader -- -- make that tough choice.
David the world hardly froze -- and ended for Iceland after that government let their biggest banks fail.
Sure they have major problems 10% unemployment their market -- 90% of its value but.
Today it is a much different story we want to hear about this from the president of Iceland all of -- crimson.
Welcome Mr.
President -- learn much thank you thrilled to have -- you know in the US.
A lot of people still wonder what would have happened had we let our banks fail I know what's on a completely different scale but.
Talk about your experience in and back then in 2008 how difficult it was.
To allow something like that to happen.
But although the -- is different in the Irish.
I think basically you almost -- states rather -- -- so.
Small faces similar challenges.
And cooped up why is similar solution so we're in -- case.
We besides it is -- left the banks fail and they were private -- And outside of some time said I have never understood why some hall -- The holy churches oversee about the economy.
Well as it is normal and told left all the companies circle park -- and -- Suddenly went up by Christian trouble everybody comes rushing and says Guantanamo of this -- -- -- some people say.
We didn't have the Monday to keep them going to some extent thought this through.
But.
It was also up half -- comprehensive policy -- On many other issue which we wept like gauged the also pokes fun on shall review pre whaling in the United States to Europe but -- For yesterday -- so Iceland to that is -- recovering.
Remarkable way we have 3% economic growth we have 5% unemployment.
The State's five -- on an original maple shed.
So by Kodak gauged the other is stop restore full -- -- which prevailing in the US and Europe.
The actually manage to woo.
Create the recovery which describe -- -- So you didn't look at the banks is these golden children that needed to be protected have been coddled and say no no walk -- did not these for a private company.
All breaking condiments that like private companies rewarding the -- goes so this -- hold those.
So why anyone they've paid chilled -- to go to people's tax payers teaches -- this -- -- -- -- that it would pay the price bill that put them.
You also did something a little unconventional and that was right away at least in the first year you didn't resort to austerity.
You up social spending in certain program last -- but then eventually you implemented some as I understand it 100 different taxes.
How did that not slow down the growth that you -- finally gotten.
He wasn't -- you want taking the nation so rule approach home fund honcho crushes them although we -- -- of course we -- both look at these create it didn't almost half hardships for.
What do -- comedies and Iceland toward laws to include many of the of that house shoes those -- mother of -- their entire savings.
So if you're going to bring on nation and is through a proponent crisis like this to have box called the -- to recovery.
You'll have to enable them to she just -- -- You have to empower them you have to make them realize.
That everybody it is -- paying.
Very positive exist into the system in this way.
And that's it's.
I -- the 48% of Americans don't pay.
At least that the important chunk of taxes well.
But yes it -- Islamic studded does because I did leave me how to.
Realized that if -- democracies going to deal with a -- -- -- -- -- like this.
You'll have to instigate the political process should such a way but people -- willing to.
The other book and and pace to sacrifice -- If they Chief Justice done in the -- democratic race so.
Wall -- date was lost all the -- to go look -- the traditional view wolf of the fiscal policies detection policies of the wealth -- -- state we also introduced currency controls should read the -- yield to debug of don't currency.
David Cameron -- UK leader.
Is making -- by giving a major speech in which he in essence says that.
He wants to if you just read through between the lines distance himself a bit from the eurozone.
You have suspended talks about becoming a member of the eurozone get one of the social democratic ministers in your country.
Kissed and Julius doctor is saying we have to be a part of the eurozone it will be dynamic for our economy.
Will you ever be a part of the eurozone as long as your president.
Well let I don't think it's related to my president GO -- but it's optional two killed let there where -- -- you rose sold.
Looked appealing for bold idea -- or -- collapse it's a completely different picture today.
All of four crimson.
President of Iceland we appreciate you being on -- -- is not a great to be with you think you're.
Sir thank you very much David interesting and completely different way of handle the banking crisis than the United States stand back to you.
