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

by Michael Hudson
Featured Writer
Dandelion Salad
Nov. 12, 2011

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


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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