I am not convinced that Iceland did the wrong thing - given the alternatives. Perhaps the foreigners who irresponsibly lent the money should be the ones bearing

I am not convinced that Iceland did the wrong thing - given the alternatives. Perhaps the foreigners who irresponsibly lent the money should be the ones bearing the brunt of the burden, as opposed to citizen-bystanders. So far Iceland appears to be doing better than Ireland: http://www.bbc.co.uk/news/world-europe-20936685 http://www.bbc.co.uk/news/world-europe-20936685 "By mid-2012 Iceland was regarded as one of Europe's recovery success stories. It has had two years of economic growth. Unemployment was down to 6.3% and Iceland was attracting immigrants to fill jobs. Currency devaluation effectively reduced wages by 50% making exports more competitive and imports more expensive. Ten year government bonds were issued below 6%, lower than some of the PIIGS nations in the EU (Portugal, Italy, Ireland, Greece, and Spain). Tryggvi Thor Herbertsson, a member of parliament, noted that adjustments via currency devaluations are less painful than government labor policies and negotiations. Nevertheless, while EU fervor has cooled the government continued to pursue membership" http://en.wikipedia.org/wiki/2008%E2%80%932011_Icelandic_financial_crisis#Recovery_starting_in_2011 http://en.wikipedia.org/wiki/2008%E2%80%932011_Icelandic_fin...