When you have a class of super rich people with strong political ties (or even a leader of one) that work tirelessly to undermine the socio-economic prospects anyone other than themselves, you start to realize that index linked loans aren't a bug, its a feature. The increasing wealth gap isn't a unintended consequence as it is by design which is exactly why this hasn't been fixed. Its a powerful tool, used to bring a society to its knees and making people that only want to live their lives, raise a family and buy a house blame themselves as it happens.

Her description of historical events are similar to what I have heard - so probably right. I have a few doubts though: those 10.000 foreclosure are less index loans but currency-basket-loans. 2008 hit, ISK halved in value, the loans doubled, you suddenly owe more than the house is worth. I would like to see the calculation on the comparation of index vs. non-index. On paper one sum of payments is higher than the other. But what is about the values of those payments? If you - lets say - took 2010 two loans (each type) for a house and repay them in 30 years: how much 2010-ISK did you spend over time? You have to calculate each payment back to 2010-money, to make it comparable - I haven't done it. I also would have liked to know more about that feed-back-loop. But true is: inflation is especially in Iceland not entirely in the hand of the Central Bank, hence your finances are e.g. depended on the Covid-Strategy of Xi Jinping or the imperial dreams of Putin.

The politicians blamed the financial collapse on people buying flat screen TVs.

fart