“Organizations are like cesspools. The largest bits float to the top”
I cannot remember whose quote that is but it is unfortunately a fitting description of the way things work in Icelandic political parties. Extraordinary people don’t stand a chance against the rush towards mediocrity, sameness and playing along. As a consequence we are now stuck with mediocre minds dealing with extraordinary events.
Arni Pall Arnason, Minister of Social Affairs is one such person. And tonight on the State Broadcasting Channel he explained why there won’t be a reduction in debts for Icelandic mortgage holders. According to Arni it is not humanly possible to compensate people for the losses they have suffered since the bank collapse.
Arni was being asked to comment on the Household Interest Groups statement from yesterday where the state is said to be freeing itself from providing real solutions, by letting Kaupthing go forward with their new “solutions” (which by the way amount to peeing your pants to keep warm during frost).
Arni says that the IMF has agreed with the government from the beginning that there cannot be an overall loan remittance program and it in fact is one of the cornerstones in the agreement. This would mean that people who weren’t responsible for the household debts, would have to pay for those that are.
This from a minister in a government that is making an agreement with the UK and Holland because of Landsbankinn’s IceSave that will plunge Icelandic citizens into massive debts they were not responsible for. From a government that ownes three banks, including Glitnir which discounted a personal loan for former CEO Larus Welding and cancelled one for its current CEO Birna Einarsdottir and Kaupthing which has relieved former key employees of huge debts. When the crash happened hundreds of million ISK were pumped into money market funds, at the cost of taxpayers.
A mediocre mind thinks in mediocre terms. The economic crash has hurt Icelandic borrowers doubly through price-indexation. Their home loans come from institutions that do not intend to pay back 100% on their liabilities. Why then should their customers be expected to smile and pay?
Besides, they won’t listen to any other plans. They need to find ways to stimulate the economy and restore trust and what is needed is solutions like the Zingales Plan. I have written to the Finance Minister and the Minister of Commerce, pointing out that plan where lenders and borrowers make a pact to both put something on the table. But they don’t answer, nor any of their assistants.
Are the mediocre minds really seeking extraordinary solutions or are they more inclined towards praying inside the box and hoping that someone will snap their fingers one day and everything will be back to the same.
Funny how somehow most of our extraordinary people are being kept away from the main tables.
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Jon
2 years ago
What’s wrong with this people?
http://en.wikipedia.org/wiki/Bankrupcy
You don’t have to pay if you can’t. It’s actually inhumane.
nn
2 years ago
Bankruptcy laws in Iceland are extremely hard on individuals. In essence, the debt of an entity can be linked to their kennitala (Social security number) until it’s declared dead – claims are supposed to expire in 7 years or so, but the debtor can refile it indefinitely if he so pleases.
Individuals can not get a new “kennitala”, so unless the debtors write off the debt they remain bankrupt until everything has been paid off with interest or to the day they die.
It’s very inhumane, but it’s the law here.
On the other hand – for company owners it’s disgustingly easy to start a new company under a new “kennitala”, moving the assets there and leaving the dept in the old company, which essentially “dies”.
Company vs. Individuals – An Unfair Advantage
2 years ago
[...] thought this comment from nn should get a bit more attention. It captures in short the disparity between individuals and [...]
Vilhjalm A.
2 years ago
Gylfi Magnusson the Minister of Commerce also deserves some sort of special prize for Outstanding Indifference to the Suffering of His Fellow Citizens.
Today he said that it’s not within his sphere of action to reduce debts of the public, because that would be interfering with the banks’ business. Let’s see, weren’t these the same banks that were busy giving the finger to the public last week, last year, and most of the past 7-8 years?
Well done, Gylfi, a nice job of avoiding your responsibility, yet again!
“Decision to reduce public debts ‘not in my work-area’”
http://www.visir.is/article/20090813/VIDSKIPTI06/646697517/-1