Iceland’s de facto bankruptcy—its currency (the krona) is kaput, its debt is 850 percent of G.D.P., its people are hoarding food and cash and blowing up their new Range Rovers for the insurance—resulted from a stunning collective madness. What led a tiny fishing nation, population 300,000, to decide, around 2003, to re-invent itself as a global financial power?
Read the whole thing. It’s simultaneously sobering and bizarre.
You’d probably blow up your Range Rover too if it cost $50,000 but you suddenly owed $150,000 on it because your loan was denominated in a foreign currency and your currency was now worthless.