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Like them or not they did it properly - they asked the people to decide via a referendum. The people made their decision, those who did the gambling were made to pay the price rather than Icelandic tax payers.
Iceland's currency has fallen by around a quarter, helping its exports.
Devaluing and exporting their way out of recession which can't happen in Ireland due to the Euro.
Iceland's recession has proved less severe and shorter than many analysts and the International Monetary Fund had feared.
This in a huge way brings pressure on Ireland's politicians to explain both why Irish taxpayers have been forced into bailing out their banks and why the Irish have accepted a loan with a positively punitive interest rate and harsh conditions attached from the EU.
Saving is an investment. You want higher interest rates you take greater risks, institutions in the UK took risks with people's money in return for higher interest rates, it's their problem if gamble didn't come off. If you want rock solid savings you invest in AAA rated sovereign debt or an AAA rated institution with a high capital ratio not a massively leveraged bank.