Iceland handled the crisis very well indeed. They didn't try to "save" their banks and allowed them to fail, implementing the deposit protection schemes. Those who were protected, got their… (View Post)

Falling debt to GDP != falling debt. The percentage of GDP = debt to GDP, so if the percentage is falling, then the debt to GDP is falling. As we entered Covid, the percentage was going down in the i… (View Post)

Well said. It is deficit, not debt, that is the relevant figure that should be looked at. Brown took us into a deficit even before the crisis hit, which then blew up (inevitably) when the crisis (ine… (View Post)

Crises happen. The idea you can abolish crises is preposterous. Bad businesses fail and should be allowed to fail. Lehman's did a bad job and paid the price. Northern Rock should have paid the price … (View Post)

The issue is we entered the two differently. We entered the GFC from a baseline of already rising debt to GDP. We entered Covid from a baseline of falling debt to GDP. If your baseline is debt to GDP… (View Post)