Iceland on the Brink of Bankruptcy

With banking debts several times larger than its economy, Iceland—rated by the U.N. as the world's most developed country—now has the distinction of being the most exposed to the credit crunch The days grow ever darker in Reykjavik. Gone is the almost eternal daylight, which washes across Iceland's capital in the height of summer. A darkening gloom arrives earlier each day now. An icy wind blows in from the east. Darkness will be a constant presence here soon as winter sets in. If ever a nation's changing climate reflected the mood of its people, it is here. Every morning, it seems, the residents awake to news of fresh problems in their country's banking system. Last week, the country's third largest bank was nationalised. This week, the government dismissed the board of directors of Landsbanki, its second-largest bank, and... [read full story]