You may be shocked to learn that the liabilities of Iceland’s colossal banks are several times larger than the country’s GNP. Prime Minister Geir Haarde recently addressed the nation and warned that in the worst case scenario, Iceland “could be sucked with the banks into the whirlpool and the result could be national bankruptcy”. You certainly weren’t beating around the bush with this statement, were you Mr. Haarde? The very fact that the country’s leader made a comment with this strong language points to the gravity of the present situation.
Unfortunately things did take a turn for the worse this morning, with major credit lines to Icelandic banks being closed. Trading at the Iceland Stock Exchange was suspended due to the crisis. Citizens around the world are justifiably worried about their financial security, but it seems that Icelanders may have the most to worry about.