IIRC the common wisdom at the time, was to put all of the private risk onto the public which is what was proposed, Iceland said no, you got yourselves into this

IIRC the common wisdom at the time, was to put all of the private risk onto the public which is what was proposed, Iceland said no, you got yourselves into this mess and you are not going to spread that risk to the public. Austerity was the proposed solution, in other countries, only after the governments became saddled with the consequences of private risk taking, conveniently after the private risk takers where clear of the consequences of their speculation.