Holy popsicle, Iceland is in BIG trouble! Seems the tiny homeland of quirky singer Bjork is in danger of going BANKRUPT. Iceland only has 330,000 people, and a Gross Domestic Product of just $14 billion. They currently have debt in excess of $100 billion. That adds up to some scary math. Little Iceland’s banks decided, like virtually every other bank in the world, to gamble in the global derivatives markets. Basically, they played with virtually no money down, which works great when the markets are going up. They aren’t going up anymore.
Now Iceland seeks to rescue all of its collapsed banks, Kaupthing, Landsbanki, Glitnir, Straumur-Burdaras, Exista and Spron. The shares of the banks have already been suspended from trading, while the politicians try to rescue them potential bankruptcy. Big meltdown alert, and not from global warming! Iceland would be the first country to go bankrupt from all of the global credit crunch. Maybe Bjork should move to Alaska.