Wednesday, October 15, 2008

How can a financial crisis in the United States cause Iceland to go bankrupt?

Generally speaking, a national government is large, relative to its country's banks, but not in Iceland -- bank assets there are nine times larger than the country's annual GDP.

It turns out that this is a major problem during a global financial crisis.

http://lfpress.ca/newsstand/Business/2008/10/15/7090236-sun.html

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