They defaulted on their obligations. It’s a great move, unless you ever want to borrow money again.
Pardon, but exactly who defaulted?
We ought to remember.... Iceland’s banks weren’t the cause of the mess, our banks were. Iceland was simply one of the smaller dominoes that fell when our banking crisis started the mess rolling.
In the case of the good old USA, I’m not sure if our financial crisis is even over.
There is no way that any economy would survive the $60 trillion in made up paper of CDOs that our banks would be on the hook for. It still may very well bring down the entire house of cards.