Guess Who Miscalled The Icelandic Economic Implosion

This is probably unfair, but I’m going to put it up anyway.

In June 2007 the U.K.’s Financial Services Compensation Scheme (sort of like our FDIC) issued a report on Icelandic economy. They quoted an “expert body” which said that, “The medium-term prospects for the Icelandic economy remain enviable.”

Of course, a couple of months later the credit crisis hit and Iceland at least til now represents the most spectacular casualty. Who was the “expert” that completely miscalled the situation in Iceland?

From the

The experts in question? No less than the International Monetary Fund (IMF), which on Thursday was granted a trebling of its resources by the G20 as part of its $1.1 trillion (£750bn) economic aid package. We are promised reform of bodies such as the IMF now that they’re being given so much money to spend and they should clearly start with the forecasting department if we’re going to avoid all the cash going to waste.

I know, it’s a cheap shot but I couldn’t pass it up.

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