It looks like Iceland faces a grim future. I honestly can’t imagine what it must be like for a country to essentially face permanent bankruptcy.
Earlier this year, National Geographic published an article about the industrialization of Iceland. One thing Iceland has to offer is cheap hydroelectric power. This has attracted aluminum smelters, because the process has enormous energy demands. There has been some tension in Iceland about whether it’s worth it to despoil its pristine environment in order to attract more industrial development. Something tells me that collapse of Iceland’s banking industry is going to lead to the construction of a lot more aluminum smelters.