Iceland’s Fair Value Vultures by Olafur Arnarson, Michael Hudson and Gunnar Tomasson

by Michael Hudson
Featured Writer
Dandelion Salad
http://michael-hudson.com
Nov. 12, 2011

The New Bank Disaster
Olafur Arnarson, Michael Hudson and Gunnar Tomasson*

Iceland

Image by poptech via Flickr

The problem of bank loans gone bad, especially those with government-guarantees such as U.S. student loans and Fannie Mae mortgages, has thrown into question just what should be a “fair value” for these debt obligations. Should “fair value” reflect what debtors can pay – that is, pay without going bankrupt? Or is it fair for banks and even vulture funds to get whatever they can squeeze out of debtors?

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