A fascinating look into the rapid rise and fall of Iceland's financial system and its perils from exploiting an addiction to leverage in both its commercial banking system and by consumer's accessibility to cheap and easy credit. For our more visual learners there is the chart below which outlines the epidemic in a simple elementary style flow chart.
The innocence of the chart by no means should undermine the seriousness of what has been lost. The complications of this rise and fall are intricate and involve billions of dollars in investments by regular working people mostly within the U.K. but also throughout the world (in the form of pension funds and retirement accounts); all of which took advantage of the flatness of our globalized financial system.
