Iceland : plenty of room

News item: Iceland had to borrow about $10bn yesterday, roughly the size of its entire gross domestic product, to prevent its economy from collapsing. . .

The loans will expose 320,000 Icelanders to a brutal recession, soaring inflation and an enormous debt burden that will haunt them for years in the form of taxes, threatening to trigger mass emigration. Up to a third of the population have said they want to flee the island.

In related news: Market analysts said panic had set in among traders. "Markets are utterly unhinged," said Bill O’Donnell, a strategist at UBS