Iceland’s Warning to the World

Nowhere else in the world, so it seems, is the crisis as visible as in Iceland, nowhere else is it so concrete. The small size of the country also means that every citizen can easily calculate how much debt has accumulated in his or her name. Before they were nationalized, the three large banks had amassed arrears of $166 billion (€130 billion), equivalent to 10 times Iceland’s gross domestic product. That comes to an additional $527,000 for every man, woman and child. An Icelandic plumber or fisherman who has a wife and two children to feed would thus all of a sudden find himself $2 million more in debt. How can the current generation ever work off this debt?

From Der Spiegel

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