The Guardian has some informative articles about it:
- The party's over for Iceland, the island that tried to buy the world
- Reykjavik battles to save economy

Telegraph as well:
Financial crisis: Iceland's ordered to start selling foreign-owned assets

At least the Russians helped out with a credit of four billion Euro. Article about it just went missing again though

So, Ireland next?

- Economic fears take toll on Irish banks
- Ireland guarantees six banks’ deposits
- The Irish solution: unlawful, beggar-thy-neighbour and short sighted, but apart from that OK

oh shit, you mean spending money you don't have is a bad thing?

those crazy terrorist towelhead muslims and their retarded archaic primitive laws!!!! if only they could learn the wisdom of our bankers.

It turns out the usury really might be a bad thing. But then again debt is money and without debt there is no money.

Pakistan too...and they have nukes.
http://www.crooksandliars.com/cernig/pakistan-faces-bankruptcy-wants-100bn-hando

I, for one, welcome our new Russian overlords.

The country isn't bankrupt though. Actually the country is doing quite well, we've been paying up debts for a few years now.

The privately owned banks on the other hand, have been running rampant. They've been playing the foreign loan game.. they owe our GDP many times over.

People here are pointing in every direction, but the real blame must lie with the bank directors. I haven't been reading the law pertaining to banks but how can a goverment ban a bank to take a loan somewhere in another country? If we think in the box of capitalism? Free markets? Because that's been preached as the new gospel here for the last decades.

Ultimately, this is a failure of capitalism.

Alot of western economies have evolved to the state that they absolutely need that we keep buying endless amounts of stuff. The amount of people working in industries where they manufacture and sell completely useless things is enormous. We've gone from producing societies to consuming ones. In the end, the consuming stops because there's nothing to pay for it.

The western world will have to learn to live within their means. It's that simple. I've often seen people pointing to the situation in Cuba as some kind of proof that Castro is evil and communism fails. They are rationed almost everything they get. But, Cuba is not a rich country, they are a poor country, they are living within their means. They have nothing valuable to sell. They try to spread the wealth to everybody. Which means that people eat a lot of rice and beans.

Here's a nice graph:
Euro exchange rates Icelandic krona