The IMF entered the picture in November 2008, advising the government to reconstruct the banking system in a way that “includes measures to ensure fair valuation of assets [and] maximize asset recovery.” The government created three “good” new banks from the ruins of its failed banks, transferring loans from the old to the new banks at a discount of up to 70 percent to reflect their fair value, based on independent third party valuation.
The vultures became owners of two out of three new Icelandic banks. On IMF advice the government negotiated an agreement so loose as to give them a hunting license on Icelandic households and businesses. The new banks acted much as U.S. collection agencies do when they buy bad credit-card debts, bank loans or unpaid bills from retailers at 30% of face value and then hound the debtors to squeeze out as much as they can, by hook or by crook.
A hunting license eh?
There comes a time when one must recognize that all “shooting galleries” where the target is a living human on the end of the range inherently results in the target having the right to shoot back.
That is, there is no such thing as a one-way hunting festival when the quarry is another human being.
Those who refuse to recognize that this is the moral equivalent of an armed takeover of the nation are fools. The culprits here are “vulture funds” that came in and “recapitalized” but then at the same time are short-term trading on these distressed situations. Their intent of course is to make as much money as possible, but there is no harm and no foul to be done to the people responsible — instead, the household is the one who takes in the seat, just as has happened here in the United States.
At some point the people must rise and put a stop to this. The IMF has done this repeatedly through history in various nations, and there is no reason for any sovereign people to stand for it. These are not your friends and they have every intention of screwing you to the maximum degree.
A few years ago Icelanders held a literal “torch vigil”; the implicit threat was clear. It appears to be time for another one, and if the vultures that are involved in this charade are not immediately shown the door by the government the unfortunate reality is that the people may have to eject both the banksters and the government by whatever means are necessary.