Will October 6th, 2008 (the day Iceland's luckless PM Mr. Haarde, asked God to help his poor nation since he himself could not) live on in our collective memory as a "day of infamy"—a sort of Icelandic Pearl Harbour?
Pearl Harbour is today remembered by Americans because of Japan's aerial bombardment on the US naval station. And because it led to the Americans' involvement in the Second World War. Wars are inevitably both destabilising and devastating. People not only lose their property—but their lives.
In our case, Iceland's economic collapse ("hrunið") may yet claim a few lives, but in most cases the losses are less tangible. Many have lost their jobs, their property, their savings. Some have even lost their hope. Then there are those who have already voted with their feet—and emigrated.
Some say our greatest loss is our reputation as an honest and trustworthy people. Because in our case, we did not suffer an attack from an outside enemy. In our case the enemy came from within. That is what makes it all the more painful. And it explains, partly at least, why so many find it almost unbearable to face the truth: We have only ourselves to blame—and no one else.
'THE THREE WISE MEN'The best thing that has happened to us after the crash is the truth-com- mission-report by 'the three wise men'. Nine volumes and almost three thousand pages, including appended documents on the web. The truth and nothing but the truth. They were asked to tell us the truth about the causes of the collapse and to find out who was responsible. And they did just that— fairly and squarely. They spelled it all out in painstaking detail.
The collapse was caused by a combination of fraudulent business schemes and irresponsible politicians. And by the way: the majority of Icelandic voters cannot be acquitted either. Time and again they voted for parties and politicians who did not deserve the trust put in them. Again and again. And the nouveaux riche buffoons—flaunting their ill-begotten wealth—were extolled as the nation's best sons. How many times did the President of Iceland, Mr. Grímsson—the hyper-active chef-de-protocol of the plutocrats—ceremoniously accord them the highest decorations of state, making it impossible for honest people to accept such commendations in the future? The critics' voices were simply drowned, and the warning signals—and there were plenty of them— were ignored.
No wonder how many are simply unable to face the truth: Out of 147 individuals in leading positions in government, political parties, the Central Bank, the civil service and banks and business corporations etc., questioned by the truth-commission, not a single one admitted any responsibility at all, not to mention expressing a sense of guilt or regret. "Not my department" was the standard refrain of those haughty elitists. This seems to be a nation where the blind lead the deaf.
But ours was not only the lethal cocktail of dishonest business and incompetent politics. Iceland was by design meant to become a shining example of the neo-conservative utopia; a tax haven for the super-rich with minimum government interference in the free play of market forces. If something were to go astray, the market forces could be trusted to correct it by themselves—or so they believed. This was not only the professed ideology of the Independence Party leadership; it was the declared policy of the IP-led governments that steered us, slowly but surely, into the crash.
Iceland's fall in 2008 was the direct consequence of this pre-meditated policy. It was not the failure of capital- ism as such. Capitalism cannot function at all without direction, legislation and constant supervision by