With a population of 300,000, Icelanders have been described as having 'one of the highest standards of living in the world.'

In March 2006, strategists at Denmark's Danske Bank published a report that warned, in addition to its very overheated economy, Iceland has seen "a stunning expansion of debt, leverage and risk-taking that is almost without precedents anywhere in the world,"


' Iceland's top three banks, Kaupthing, Landsbanki and Glitnir went on a helter-skelter international expansion over the past decade and their total assets have ballooned to 10 times the size of Iceland's economy.'
Canadian Globe&Mail October 2

'For at least a year, alarm bells have been ringing over Iceland's economy and banking system, which has been likened to one big Viking hedge fund.

In April, Andreas Hakansson, an analyst at UBS, pointed out that the liabilities of Iceland's banks dwarfed the rest of the economy, equating to 800pc of GDP – way beyond the European average of 300pc.'
Alarm bells ring as Iceland's economy shakes

On Monday Iceland's government Monday a 75% stake in Glitnir Bank for 600 million euros, or 6% of gross domestic product. The nationalization was prompted by mounting liquidity difficulties at Glitnir, which is one of the country's three largest banks.