This year, Iceland’s economy will outgrow the euro area and the developed world on average.
Since the end of 2008, Iceland’s banks have forgiven loans for more than a quarter of the population, a total equivalent to 13 percent of its annual gross domestic product. Despite shrinking 6.7 percent in 2009, Iceland’s economy is projected to expand 2.5 percent this year and next, compared with 0.2 percent in the euro area. And while Iceland’s recovery does not provide a complete parallel to U.S. economic woes, the island’s nascent success does demonstrate how loan forgiveness can help reignite a struggling economy.
Our nations homeowners and working class citizens, many hit hard by the disintegration of the auto industry, are struggling every day to slave for their payments. They NEED this.