It is a strange feeling to witness your country falling apart before your eyes. You first start to panic when you realise that there is nothing you can do to stop the crash. When the crisis hit Iceland’s shores last year the rock of the Viking economy proved to be nothing more than clear water. Now we shall have to wait and see whether Dubai’s economy is built only on sand, or if a more solid base can be found to underpin its economy.

From the Guardian

Note: Will the legacy of the political and business elite which ruled Iceland in the past two decades be that the word Iceland becomes synonymous with economic disaster?

Note II: Eirikur Bergmann thinks that life is returning to normal. If normalcy is  a dead housing market, price indexation, higher food prices, higher taxes, less government service, currency depletion, unemployment, corrupt banks, inept government and an almighty rift in society then he is right.

His column though seems to prove the lack of understanding within Icelandic academia on what was really going on in the financial sector before the economic collapse and a lack of understanding in economics in particular. To send the message abroad that everything is returning to normal is insulting to the people of Iceland.

Related posts:

1. Four Good Reasons Why I Am Starting a Start-up Away From Iceland!
2. Iceland In The Desert – The Dark Side Of Dubai
3. Here We Go Again? – Dubai Shake Round 2 Of World Wide Crisis?
4. Guardian: Iceland One Year On
5. State Owned Banks Gearing Up For Competition