Category Archives: Economics

Booms follow Busts; Busts follow Booms

 

 

The National Bird of Iceland: Cranes

 

Our coach driver, A.O.,  pointed out how Iceland was coming back from their recession that was brought about when  their 3 major banks failed in 2008.  He said that Iceland was the only country to have paid back its IMF emergency loans. He said that now the country was back in a big spending mode. I had already noticed that cranes were omnipresent. It reminded me of Shanghai, which at one time reputedly had 1/3 of all the cranes in the world. In China our guide had said the crane was China’s national bird. Perhaps that was now true of Iceland. I hope that this spending  spree does not mean that another bust will follow the current boom. Busts are not pleasant.  Yet that is how capitalism seems to work. Booms are followed by busts. Bust  cause a lot of pain. I remember what John Kenneth Galbraith had said, “A balloon never deflates in an orderly fashion.”