Bubble watch is in high gear once again in the good ole USofA. When and why they pop and how bad the fallout will be is a tale yet to be written. But what just happened in another country is what should have happened here to prevent the next bubble/burst cycle from even happening. The perpetrators are being sent to prison.
Iceland’s supreme court has upheld convictions of market manipulation for four former executives of the failed Kaupthing bank in a landmark case that the country’s special prosecutor said showed it was possible to crack down on fraudulent bankers.
Read more: http://www.irishtimes.com/business/financial-services/iceland-convicts-bad-bankers-and-says-other-nations-can-act-1.2102727
This is not to compare Iceland and the United States, as you can’t. However, what they accomplished the United States made no effort whatsoever to do as the bankers are a protected species.
“This case…sends a strong message that will wake up discussion,” special prosecutor Olafur Hauksson said. “It shows that these financial cases may be hard, but they can also produce results.” Not all of Iceland’s prosecutions have succeeded. But the country’s efforts contrast with the United Statesand particularly Europe, where though some banks have been fined, few executives have been tried and voters suffering post-crisis austerity conditions feel bankers got off lightly.
No, I haven’t gone off my rocker and bought into the notion of what the special prosecutor suggested. This won’t open any discussion whatsoever of bringing the banksters to justice here in the United States. It’s just nice to dream a little.