Peter Ewart & Dawn Hemingway’s response on the financial crisis which occurred in Iceland back in 2008 and 2009 provided helpful insight in trying to understand the current situation of economy as well as the extent of financial control a country needs to have in order to avoid having disastrous financial crisises. After reading the blog, I could see how countries could lose grip of their finances and end up asking for help from other countries or institutions. The collapse of three of Iceland’s banks due to their difficulties in managing their short- term debts which nearly caused the country to go bankrupt. Emergency measures such as massive borrowing from the IMF and other countries as well as austerity measures helped clear out some of the debts, but the effect it had on Iceland’s people still linger till now. The financial crisis which occurred in Iceland can be learned from, as it is dangerous to lose control of finances and the long term consequences can be extremely devastating. Therefore, although it might seem that countries have a strong grip on their finances, mistakes can so often be made; making it imperative to prepare for the worst and expect the best in finance.

Source: http://www.opinion250.com/blog/view/22044/1/reflections+on+iceland+and+the+financial+crisis+-+part+10