The story is a bit out-of-date, but this overview of the cause and effects of the Icelandic financial crisis is still worth a read.
Picture a pig trying to balance on a mouse's back and you'll get some idea of the scale of the problem. In a mere seven years since bank deregulation and privatisation, Iceland's financial institutions had managed to rack up $75bn of foreign debt. In his address to the nation, Haarde put the problem in perspective by referring to the $700bn financial rescue package in America: "The huge measures introduced by the US authorities to rescue their banking system represent just under 5 per cent of the US GDP. The total economic debt of the Icelandic banks, however, is many times the GDP of Iceland."
Nathan Myhrvold, billionaire polymath, recently wrote a series of three posts for the Freakonomics blog about his trips to Iceland and Greenland.
I'd like to say that global warming was evident during my visit, but that is not really the case. Indeed, [my guide] Salik tells me that he and most Greenlanders are pretty skeptical about it. The local fishing industry used to be based on arctic prawns, but the sea temperature has changed just enough that the prawns are much further north, so now they fish for cod.
But, as Salik points out, this cycle has happened several times in living memory. The same with the glaciers: yes they are retreating, but at least in his area, they have yet to reach the limits that the locals remember them. Objective measurements do show that climate change is happening. Nevertheless I was amused that the locals don't seem to think it is such a big deal.
The photos are worth a look by themselves.
Tim Gasperak was recently in Iceland and took some gorgeous photos. More at his site, Big Empty.
