RS 3 A New Mom and the President of Iceland

This blog post is my analysis on the economic podcast “Episode 267: A New Mom and the President of Iceland.” This podcast appeared on the planet money website on February 1, 2013. In 2008 Iceland was hit hard with the recession and suffered a huge financial crisis. Major banks in the country fell and people that invested in places like the UK and the Netherlands were unable to take their money out. 

The President of Iceland made a decision to not reimburse the people who invested their money with the banks to lower the losses that Iceland was going through. A vote was set up for the Iceland people to vote "yes" or 'no" on whether or not the investors should receive their money back, and majority voted no. 

The British and Dutch were not to happy about this and filed a lawsuit against Iceland for their money back. Luckily Iceland was in favor on the suit and did not have to pay back all the money. I think that this is a really tough situation to be in the middle of, but thats life. The people who invested in these banks could have put their money any where else, but chose here. It is like investing in a stock and it losing money. You know the risks.