Friends,
The global economic crisis has struck Iceland particularly hard and her population has noticed and taken to the streets. The rioting over governmental and business malfeasance in racking up huge debt has even involved hurling yogurt at the prime minister. Yogurt, people.
We might’ve anticipated the riots in Greece since their unemployment rate is staggering and their government isn’t exactly ready or able to do anything about it. Iceland though, is a special case. They’re leveraged to the hilt with among other nutso financial instruments—deep breath now—mortgage-backed securities! Hooray!
Icelandic banks are collapsing left and right with no real chance of insurance for depositors. Calls for early elections are getting serious traction at the moment (why not? some of those people have yogurt.), markets have stopped trading their currency and the IMF is propping that currency up with emergency cash. Doesn’t this only happen to third world countries? Not anymore.
Sigh.
– bob
UPDATE: Ain’t this a fine kettle of herring? It appears that the Icelandic government has finally collapsed. Prime Minister Geir Haarde got smacked around by the Social Democratic Alliance Party and was forced to disband government. “I really regret that we could not continue with this coalition, I believe that that would have been the best result,” Haarde told reporters that I presume included the Associated Press (where I borrowed that quote from in its entirety). Clearly it would’ve been the best to keep the old people in power to fix the problem, much like it’s a great idea to keep the current management of GM in charge of their bankrupt behemoth. Of course you want to dance with the one that brung you, that’s only polite. But if your dance partner is bringing you to the edge of total destruction, maybe it’s time to tear up your dance card. Just saying.