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Economic woes hit Icelanders especially hard
Considering Iceland's location and climate, perhaps it's no surprise that the country's credit markets are in a deep freeze. During the "boom years" of the '90s, Iceland became one of the richest countries in the world per capita, thanks to economic reform, a booming stock market, and an increased demand for the fish off its coasts.
But as the Guardian points out, "Iceland built its extraordinary wealth on the crest of the worldwide credit boom and now the crunch is sweeping it away, bankrupting a people for whom the past eight years have been, for most of them and by their own admission, one long party."
Iceland's currency is plunging towards the center of the Earth-- almost as weak as the currencies of Zimbabwe and Turkmenistan-- and supermarkets are having trouble paying for more food to be imported.
All of this is obviously terrible news for Icelanders, but travelers might find some unbelievable deals if they want to visit any time soon. Not only that, you'd be helping out the locals by providing some much-needed foreign investment.
More here.
(Photo via ContemplationDC)
Reader Comments (Page 1 of 1)
nzm Oct 8th 2008 8:50AM
You may get there on cheap flights, but be prepared to be fleeced when you arrive - especially during the peak tourist season.
We went in August and our credit cards are still recovering from the shock!
However, it's a beautiful country and you'll see lots of interesting sites.
riffcold Oct 11th 2008 7:06PM
It USED to be one of the most expensive places...Iceland's bankruptcy has nearly tripled the amount of krona you get for a buck. Should have waited a few months :)