Iceland Going Bankrupt

Of all the countries hard-hit by the financial crisis, Iceland is faring the worst. For those not following the fate of the small Atlantic nation (that is to say, most Americans), the Icelandic government yesterday shut down its stock market as the nation faced almost certain bankruptcy. The government also seized control of the last independent bank in the nation, while the Icelandic currency -- the krona -- was completely devalued.

Observers are saying that the only possible way for the Icelandic government to survive is through an IMF bailout. As quoted in the New York Times:

“Iceland is bankrupt,” said Arsaell Valfells, a professor at the University of Iceland. “The Icelandic krona is history. The I.M.F. has to come and rescue us.”