Uk and the Netherlands' loud yelling to the contrary notwithstanding Iceland made it clear very early that it only considered Icelandic domestic savers guaranteed; and afaik those were compensated to the legal limit.

Yeah, except that under the relevant international treaties and domestic law, domestic and foreign depositors are equally covered by depositor insurance. Because depositor insurance is based on the country the bank lives in, not the country the depositor lives in.

That's an insane rule, of course, but no more insane than expecting Greece to pay for Germany's export subsidies.

If an ex post facto law can change a default into a not-default, then I propose that Greece et al introduce such a law stating that all government debt issued prior to such and such date is payable in Monopoly money.

Problem solved!

But if you still don't like the Icelandic example, you can have Argentina, Russia and 1920s Germany as examples of the world not ending just because you go with the Argentina Alternative.

- Jake

Friends come and go. Enemies accumulate.