That's very different; Iceland's total debt was tiny (compared) as it is a very small island (Iceland's debt was perhaps 1/12 the size of the debt held by Lehman Brothers). Very annoying if you had money stored in Iceland, but otherwise not a huge problem.
The US letting its banks fail would possibly have brought down the entire economy, leading to a far, far more severe crisis. That's what the parent is speculating about.
The US letting its banks fail would possibly have brought down the entire economy, leading to a far, far more severe crisis. That's what the parent is speculating about.