The US has a lot to learn from Iceland

[Joy in Mudville]

The Toad supported TARP because of the wait for it... 'oh noes, end is nigh, Apocalypto at hand.'

"I’d add that the big risk in October 2008 — that the whole world financial system would freeze up."

Iceland did help VBS and Saga Capital but the big banks were allowed to go under and their gambling debts were not transferred to the broader populace. The Toad (exclusive of his magic 'but my religion did it' after the fact attempt to attach himself onto Iceland), however, had a different prescription (the same one that he is peddling yet again for Spain).

Again, you're misrepresenting what the man was saying about TARP in late 08 but why is that not surprising?

Iceland had no ability to bail out the largest banks because their liabilities essentially dwarfed the small nation's economy.

Krugman's commentary on Spain is primarily based around the fact that Spain is shackled to the Euro. His general commentary on the entire situation is that inflicting austerity measures in the midst of an economic downtown drives down demand and worsens the downtown. This is basic economics and we have seen it play out over the past several years. It was entirely predictable and many of us said as much back in early 09.

Compare GDP growth between countries, such as the United States, that actually made some attempt at Keynesiasm and those that didn't and you won't like what you find. The United States has done quite well in terms of GDP growth compared with it's European counterparts.

[boink]

In the US meanwhile, Eric Holder was too busy hounding states like Arizona for their immigration policies--rather than go after the real problem--banksters on Wall Street.