This is pretty misleading. Iceland could let their banks fail for several reasons. First, they were not essential to the global banking system. Second, while Iceland's equity market lost a lot of its market value, it really did not hurt the citizens of Iceland - they invested as most do, in U.S. and Europe with some emerging markets allocation.
As is pointed out, the decision to let the banks in Iceland fail is applauded by many...but this is due to the ridiculous size of Iceland's banking system compared to the rest of its economy. Also, don't forget, the same IMF that says they did the right thing now, said 6 months before the crash that there was no problem with the size of Iceland's banking sector relative to the rest of the economy.
This article seems to selectively reveal information based on a pre-existing belief held by the author.
As is pointed out, the decision to let the banks in Iceland fail is applauded by many...but this is due to the ridiculous size of Iceland's banking system compared to the rest of its economy. Also, don't forget, the same IMF that says they did the right thing now, said 6 months before the crash that there was no problem with the size of Iceland's banking sector relative to the rest of the economy.
This article seems to selectively reveal information based on a pre-existing belief held by the author.