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Icelandic government becomes first to be brought down by the credit crunch

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ryanpatgray Posted: Sat, Jan 24 2009 12:54 PM

Via Mail Online (UK):

Graham Smith:
The global financial crisis hit Iceland, which has a population 320,000, in October, triggering a collapse in its currency and financial system under the weight of billions of dollars of foreign debts incurred by its banks
The economy is set to shrink 10 percent this year and unemployment is surging.
Critics wanted Haarde, the central bank governor and other senior officials to resign.

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There have been lots of protests as well.  It's pretty close to anarchy over there from what I have read.  I wouldn't be surprised if the EU sends in troops to support the government at one point.  The people are really pissed off.

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I envy them in a certain way; at least their country is taking the bad medicine ahead of time, rather than denying, lengthinging it, etc. like others are.  I hope they go through the adjustment with as little pain as possible, but waking up to the nightmare of central banking is painful regardless. 

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