I am very saddened to read about the recent economic problems in Iceland, a country I have visited twice on hiking trips and love dearly. I always found the Icelandic people to be warm and friendly, and very civilised. However we all have our limits, and apparently many in Reykjavik have reached theirs:

Iceland Eyes - Day Two

Iceland Eyes - Damage

"Iceland Review Online" - http://icelandreview.com/icelandreview/daily_news/?cat_id=16539&ew_0_a_id=318736

What is interesting is that the popular media is largely not reporting on these events, but as always citizen journalism in the form of bloggers is filling in the gaps.

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Updated 2021 : note that the above post is from 2009, but is left here for archival purposes. One of the external links is now broken, so I had to unlink it.