What's this I hear Iceland went bankrupt?

Yeah, a handleful of Polar bears would make a nice investment!

More seriously, a state cannot go bankrupt in the same way that an individual can, and Iceland is nowhere near bankruptcy.

The State may not be bankrupt but most of the financial institutions are (or at least in a DEpression). Their banks wanted to conquor the world but they spread themselves too thin, too quickly, at the wrong time. Now the Kruna (Icelandic crowns) are nearly worthless. It has been said that Norway is thinking about offering them to use it's Kroner to stablize the economy in Iceland. But everything is 'hear-say' at the moment - no real action has happened.

here, you can get an honest read on the situation here:
[http://newiceland.net/]

Iceland isn't bankrupt.... Never. Mind you, I went there for a holiday awhile back - and after 2 weeks I nearly was. Talk about expensive. Made UK prices look like Bulgarian!!!!
Happy empty pockets.... Kriss - Manchester

I earnn money in Iceland and that money has been frozen for almost a month. And, to top it all off, the US/ISK exchange rate is most unfavorable for converting ISK to US dollars. The money I could transfer is now worth like 35% less.

oh well, us here in Australia aren't too well ourselves.

No more online shopping!

Yeah - Iceland.... Good pitch, "Interest rates here are now 18%. Invest with us".
Read the smallprint though..... "You don't get your money back, that goes to the banks and the politicians."
No change there then.