Hannesi Hólmsteini svarað í Wall Street Journal

Wall Street Journal 

Regarding Hannes H. Gissurarson's Feb. 3 State of the Union column, "Iceland Turns Hard Left," about Iceland's bankrupt economy:

Mr. Gissurarson is one of the main reasons for this situation. He was, and is, Iceland's high priest of ultra-hands-off capitalism and was the best friend and adviser of David Oddsson, now the president of Iceland's central bank and before that a longtime prime minister. Many Icelanders believe that the first job of the country's new government should have been to fire Mr. Oddsson. He refused to resign when he was asked, so the new government should change the law to get rid of him if necessary.

Under Messrs. Oddsson and Gissurarson, Iceland's banks were allowed to grow too large -- as if Iceland could become another Switzerland. It was the central bank's responsibility to keep this from happening. Iceland will very likely become an example in this regard in the future teaching of economics world-wide.

Just a year ago, Mr. Gissurarson gave an interview to Icelandic broadcaster stöd2. He explained that the great success of Iceland's economy was the victory of his and Mr. Oddsson's policy of totally free capitalism. Even then the reporter asked him if this economic success was just hot air -- but no, Mr. Gissurarson said. Not many of us would agree with him today.

Hlynur Gestsson
Reykjavik, Iceland