Re:Iceland close to bankruptcy
by pjesi on Wednesday October 08, 2008 @07:11AM
(#326472)
Actually no, they are not saying we are going bankrupt, the world media is.
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There's not a chance the Icelandic government will actually go bankrupt. It would be historic. Sovereign states do go bankrupt once in a while, but I've never heard of one choosing to bankrupt itself in order to partially pay off the bad debt of a corporation.
If Iceland has obligations to some of these companies, they'll likely just default on the debt. The end result would be the same, but perhaps with somewhat less political turmoil.