Editorials: Real democracy in Iceland? | openDemocracy
Four years have passed since the financial system crashed in Iceland. The crisis hit Iceland harder than many other countries: the whole banking system defaulted and crashed. Attempts to bail out the banks failed, and because of the size of the banking system in Iceland, the government did not have the option of taking them over – the Icelandic state would have defaulted. It was a crude awakening for most people. The enormous “success” of the financial sector before 2008 was a matter of national pride. Living standards, mostly based on great expectations and debt, had skyrocketed. But it had all been a lie. And the political system had failed to prevent this unsustainable bubble. In fact political parties attributed the “success” to their own policies, while most did not read the danger signs and the few who did sound the alarm were not heard. After the crash swept it all away, trust in the political system fell to ten percent. It has not risen since then.