Daily Archives: October 6, 2008

Iceland takes the financial meltdown hard

How hard? Well, according to this story, The party’s over for Iceland, the island that tried to buy the world from The Observer

‘Iceland is on the brink of collapse. Inflation and interest rates are raging upwards. The krona, Iceland’s currency, is in freefall and is rated just above those of Zimbabwe and Turkmenistan. One of the country’s three independent banks has been nationalised, another is asking customers for money, and the discredited government and officials from the central bank have been huddled behind closed doors for three days with still no sign of a plan. International banks won’t send any more money and supplies of foreign currency are running out.

… On Friday the queues at the banks were huge, as people moved savings into the most secure accounts. Yesterday people were buying up supplies of olive oil and pasta after a supermarket spokesman announced on Friday night that they had no means of paying the foreign currency advances needed to import more foodstuffs.’

That hard. Reading the article, I wonder how the people of Iceland are going to be able to get out of the situation. Not only that, but are other countries going to be in the same situation, countries you might not expected to be so overdrawn.