Crisis in the nordic Paradise

The country has the 5th highest GDP per head; the highest quality of life (shared first place with Norway); is on the second place in the technological readiness index; has the second highest car ownership (632 out of 1000 citizen own a car), and has the 9th highest life expectancy (in fact, it has the second highest male life expectancy, after Andorra).
Which country am I writing about?
I’ll give you another hint. The country I’m thinking off is the probably worst affected by the credit crunch.
Yes, indeed, I am talking about Iceland. Did anyone by any chance check the value of the Icelandic Krona today? – 1 Euro is today worth 145 Krona. That means 1 Krona is not even worth a freaking Euro cent! I remember last year the Euro being worth less that 100 Krona.
In Iceland we see for the first time properly, how the financial crisis can affect the state. Prime minister Geir H. Haarde even spoke about the real danger of “national bankruptcy”.
The Allthing, the Icelandic parliament, even introduced emergency laws trying to fight the financial crisis. These emergency laws allow the state to interfere with the finance sector. However extreme and brutal these laws are, none of the political parties in the Allthing rejected them. This is how extreme this crisis is.
How did it get all that bad? Iceland's banks made a fatal mistake several years ago, offering great deals to people on the ireland and abroad (Britain mostly, but also Germany and the Scandinavian countries). Today, the banks cannot cope with the debts anymore, as they equal to 12 times the size of the entire Icelandic economy.
The government now manages the third largest bank, Glitnir Bank, and the second largest bank, Landesbanki Island HF. However, several experts seem to doubt the government's ability to cope with the disastrous banks. One of the emergency laws that were passed by the parliament ruled that the government does not have to guarantee the money in the banks anymore. Nevertheless, the government wants to save the money for Icelandic citizens, but not for foreign investors. This could hit many Britons hard. However, I have heard from informed sources that the British Government might sue Iceland over British deposits account holders with Landsbanki's Icesave Internet banking.
The danger that Iceland might become the first country that has to declare national bankruptcy due to the financial crisis is as real as the crisis itself.
Schreiber