Sunday Herald: ICELAND FACES MELTDOWN DEALMAKING: BOOM AND BUST DEALMAKING: BOOM

There is too much debt, too much lending. He says: "The maturing debt in two years is 130-per cent of GDP. For Britain it can't go above 40-per cent of GDP. Those debt levels are remarkable, you won't find them anywhere else. The effect is that borrowing is running down net savings and running a very large current account deficit, which is running at 10-per cent of GDP. In the UK it's 6-per cent." Through all the predictions of doom and gloom, the Icelandic Financial News's Arnason says that there is no panic on the streets.
"There are not massive queues outside the banks with people looking to get their cash out, " he says. "The banks are bumping up the interest rates which means that now people are not remortgaging the