

How Iceland Rattled the World - lnguyen
http://online.wsj.com/article/SB123032660060735767.html

======
tokenadult
"Amid Iceland's euphoria, there were warnings. In 2006, analysts at Danske
Bank wrote a paper titled "Geyser Crisis" saying that Iceland's banks had
grown too much, and the country was dangerously reliant on the willingness of
foreigners to keep sending money.

"Hedge funds attacked the Icelandic krona. The banks weathered the assault,
and the krona bounced back. Fatally, Iceland viewed its successful defense as
proof of the banks' resilience.

"But the Danske Bank team wasn't wrong, just early."

