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The multi-billion ISK profits each year
made those who warned that everything was not alright
irrelevant and old-fashioned as it was put at that time
At the same time, most of the international banking system
went ahead of itself.
There are mainly two reasons for this
Interest rates were kept too low for too long
by the worlds biggest central banks
and at the same time the banks were expected to
regulate themselves and manage their own risk
to a greater degree than before
That change in policy could have worked, and quite well
if alongside it had followed that state would not
take responsibility for the banks in case of their bad decicions
If it had been clear that the banks were operating
at their own risk
their creditors would have restrained them
and would not have accepted the commercial banks changing
into risky investment banks at the blink of an eye. �