Iceland, long thought of as a country of stable, hard working Norse people has been on one long party. Flush with funds from deregulated banking, fishing quotas and large pension funds, the Icelandics went on a spending spree sweeping up stocks, primarily in Europe. The average family in the Island of 320,000 saw their income rise by nearly 50% and luxury goods raced off the shelves.
Now it's the morning after and the hangover includes huge losses as the world's banks crumble. Grocery chains are claiming they do not possess enough cash to buy staples. The currency is in free fall, inflation is at 12%, banks have been nationalized and people are lining up to move their money into the safest accounts possible. The government seems unable to cope with the crisis which deepens as foreign banks cut off any possibilities of financing.
Perhaps we don't have it so bad after all?
Iceland Melt-Down via The Guardian