The Ice(land) Is Melting

Yesterday I learnt something new about macroeconomics: just as banks and companies, countries can go bankrupt. Apparently, Iceland is in serious economic trouble after a ten-year long economic boom during which its banks and citizens expanded both the reach of their investments and the figures in their accounts. Now that these investments have collapsed, the country is in a state of alert over the possibility of breaking down, to the point that Icelanders fear a shortage in food supplies.

This is proof of both the depth and the global reach of the crisis, especially dramatic on a week in which European banks have begun to show their weakness. I'm no economist so I can't really explain what's going on in the land of ice, but I'm enclosing an article about it from the Herald Tribune.

http://www.iht.com/articles/2008/10/09/business/09icebank.php