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As late as the mid 1980s, Icelands economyrevolved around little else than a semi-robustcod-fishing industry. By the end of the century, however, it had transformed itself into a major player inworld finance, building an international bankingempire worth twelve times its GDP. The tiny islandnation of 300,000 was one of the global economysgreat success stories.

And then everything came crashing down.

Why Iceland? is the inside account of one ofthe economic meltdowns most fascinating andfar-reaching tragedies. As Chief Economist of Kaupthing Bank, the countrys largest bank beforethe collapse, sgeir Jnsson is perfectly suited toexamine Icelands collapse in painstaking detail. He witnessed behind-the-scenes events firsthand, such as an intriguing meeting in January 2008 whena group of international hedge fund managersgathered in a bar in Reykjavik to discuss Icelandseconomyan informal affair that eventually becamethe center of a criminal investigation by thecountrys Financial Supervisory Authority.

This inside account examines the pressing issuesbehind historys biggest banking collapse:

• How did Iceland transform itself fromone of Europes poorest to one of itswealthiest countries?
• What happened to cause the destructionof the nations banking industry during asingle week of October 2008?
• Was it the result of a speculation attackby hedge funds on the nations currency?

Iceland remains the biggest casualty of theeconomic downturn, and the ramifications of itscatastrophic failure reach deeply into the economiesof Europe, the United States, and other globalmarkets. sgeir Jnsson offers a unique perspectiveand an experts insight into the rise and fall of thisonce-proud banking giant.

Why Iceland? provides the who, what, where, andwhen of Icelands demise, serving as a fascinatingread and providing the understanding necessary forforecasting when and where the aftershocks willshake up markets in other parts of the world.

Fearsome Vikings discovered Iceland. Hedge funds knocked it down. It was a humiliating tumble for the former financial powerhouse, which was proud of its status in Europe. A late bloomer, Iceland had been the last country in Europe to be settled, the Nordic nation rapidly caught up with its wealthier relations. It was all fine until October 2008, when countrys banking system collapsed in a week. Written by an Icelandic economist, Why Iceland? chronicles the meltdown, in the context of the nations history.— New York Post (A Required Reading Selection)