bookmark_borderWill Iceland go bankrupt?

There’s a scary article about Iceland on BBC.

Basically, the Icelandic banks have overstretched themselves to such an extent that the Icelandic state may have the choice between letting all the major banks collapse or taking them over and then possibly having to declare a state bankruptcy.

Some of the comments suggest that Iceland might have to introduce the euro to prevent a collapse of its currency.

Things might be bad here, but they sure seem to be worse further north!