Iceland’s bankrupt: Is this where NZ is going?

So we all know that Iceland is bankrupt – what is the situation like for New Zealand?

A few of the stories I saw when Iceland first went into massive trouble were here, here, and here.  At the time the comparison was so popular that there was a Dom Post article on the risks of New Zealand’s current account.

However, I think by now it is obvious that I am not going to agree 😛  Our stock of debt is equal to one years income – I don’t see how this is unsustainable!

So tell me – are we heading towards bankruptcy, are we heading towards a bumpy ride, or are we heading towards more “golden weather” 🙂

2 replies
  1. Matt Nolan
    Matt Nolan says:

    “Maybe they will show up at Dept of Immigration with their gumboots?”

    Are you suggesting that foreign lenders will move here to work the farm WITH gumboots – I do believe that this constitutes an inflow of productive capital 🙂

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