Bee, a failure of regulation certainly, but I have heard no intelligent voices blaming the British Government for the present chaos. As you have noted yourself, the act that has been used to freeze Icelandic assets deals with more than terrorism. The part of it that has been invoked in this case does NOT concern terrorism. Skarpi is way off beam on that score and needs to calm down.

In fact Skarpi should be asking what Iceland's regulators (if there are any?) were doing while such a tiny economy was spawning a banking system that accumulated capital amounting to many times Iceland's GDP - all underpinned with IOUs. If Skarpi takes a sensible look at what is going on he might notice that Brown's measures - unlike the US bailout fiasco for instance - have attracted very little serious criticism either in the UK, the US or anywhere else, and may yet turn out to have set a direction the rest of the western economies need to follow.

Bravo Emma B for staying with it.