SOMEBODY TELL PAUL RYAN ABOUT ICELAND

(h/t Wonkette)

Of course, it's not just Ryan but all the other wackos who want slash the social welfare budget in the name of moral & fiscal austerity.

IMF Says Bailouts Iceland-Style Hold Lessons in Crisis Times
By Omar R. Valdimarsson - Aug 13, 2012 4:09 AM MT
BLOOMBERG NEWS

Iceland holds some key lessons for nations trying to survive bailouts after the island’s approach to its rescue led to a “surprisingly” strong recovery, the International Monetary Fund’s mission chief to the country said.

Iceland’s commitment to its program, a decision to push losses on to bondholders instead of taxpayers and the safeguarding of a welfare system that shielded the unemployed from penury helped propel the nation from collapse toward recovery, according to the Washington-based fund.

Iceland refused to protect creditors in its banks, which failed in 2008 after their debts bloated to 10 times the size of the economy. The island’s subsequent decision to shield itself from a capital outflow by restricting currency movements allowed the government to ward off a speculative attack, cauterizing the economy’s hemorrhaging. That helped the authorities focus on supporting households and businesses.