Iceland under the cosh

Chickens are coming home to roost for the bold Northmen. It never seemed likely that the boom could be sustained by overvaluing the Stock Exchange of a nation of 300 000.

Now the lending rate is 15%, which would cause hysteria in Britain, although with inflation at 7% this is not so bad as it seems.

According to the FT, the "value" of the banks alone is 10 times GDP. Savvy shareholders will be selling quick. Which will accelerate the panic.

Soon Iceland's main income will be from Bjoerk's record sales; particularly the track with the Greenland Ladies Choir.

FT: En nasjon som drivs some en hedge fund.