I’m fascinated by the implosion that is Iceland.
I’m sure everybody knows that the economy is not great here in the US and every country is now paying for the subprime trouble that started last year. With the US economy tanking, major markets around the world has been feeling spillover effects – Europe’s economy is already in recession, Asia is anticipating a drastic slowdown, South America’s suffering from the double whammy of lower commodity and fuel prices and even Russia has lost much of its petroarrogance.
In short, America’s problem is really everybody’s problem.
But Iceland really epitomizes the dark side of globalization. The country is bankrupt and has nationalized all three of its banks. The country is reaching out to Russia and scandinavian countries for help. Inflation is at 16% while its currency has dropped close to 100% in value.
Okie, the icelanders are probably not smiling like this now and it is truly scary to see how things can change so fast for a country.
New York Times’ Thomas Friedman described the surreality of Iceland’s situation well with this line: