When the banks get bailed out its not of primary importance that bankers keep their jobs or "get a raise". The people being bailed out are the banks creditors. Iceland didn't tell the bankers stuff it (well they may have too--it's just less important), they told the lenders stuff it.
Iceland was in a position to hang out the creditors, because 1) they were all foreign; and 2) they didn't have an immediate, present need to tap the capital markets.
While not being in precisely the same situation as Iceland, Ireland probably could have done something similar. Greece cannot, because they continue to need to borrow immediately.
I think the (correct) point of the original article was that listening to and following the advice of your creditors is typically the best thing for them, but not for you.
Isn't Greece trying to run a primary budget surplus, i.e. before interest payments. If they managed that, they wouldn't need to tap capital markets after defaulting.
Iceland was in a position to hang out the creditors, because 1) they were all foreign; and 2) they didn't have an immediate, present need to tap the capital markets.
While not being in precisely the same situation as Iceland, Ireland probably could have done something similar. Greece cannot, because they continue to need to borrow immediately.
I think the (correct) point of the original article was that listening to and following the advice of your creditors is typically the best thing for them, but not for you.