It looks like there is a good chance that Iceland the home of Fire and Ice is going to go belly up and Declare Bankruptcy.
To me this really has no direct effect on me. My job does not do business over there, I don’t know anyone who works in Iceland, and I don’t do my banking with the National Bank of Iceland: Kaupthing which was just taken over by the government. I think we all can agree that in these days of global financial markets the effect of Iceland’s collapse will be felt in the Dow Jones Industrial Average, which in turn it will be felt in my retirement accounts.
Here in the U.S. we have had several banks that have been taken over by the Feds, but we have many banks that are still strong, and are positioning themselves to be even stronger by purchasing these troubled banks for pennies on the dollar.
That being said entire countries that have developed economies, and function under democratic capitalism going bankrupt cannot be a good sign!
