Man, It's Tough Being Iceland These Days

Not only has Iceland's financial system imploded, leading to a countrywide crisis, but it still owes about $5 billion to to the British and Dutch governments for depositors there who lost money when Iceland's banks went under -- a payment Icelandic voters refuse to approve -- and one of its volcanoes stopped international business, travel and culture for the past 10 days. Neither of these events is Iceland's "fault"; its financial sector's collapse was more a consequence of the worldwide system's train wreck rather than a cause of it. But when you're a tiny country whose national identity seems to be partly based on seclusive pluckiness, it sure seems to be an existential blow when it turns out you're not that secluded and the whole world suffers as a result.

Unfortunately, there are plenty of other European countries whose misfortunes can quickly paper over Iceland's these days: Greece, Portugal, Spain, Ireland and Italy, in order, more or less, of the likelihood of a sovereign debt default. The situation's similarity to that of investment banks circa July 2008 is looking too familiar. It's even possible to pick which one will be the equivalent of Lehman Brothers. Obviously, it's not Greece, now that the European Union and IMF will bail it out. I put my money on Portugal, on Europe's economic, geographic and cultural periphery; it's not as firmly on the limits as, say, Romania, but it's not as critical to the zone's identity as Germany, France or even Austria. So much for the EU, or even more of a need for the EU? Perhaps all times are interesting, but these seem particularly so.

At least these times give a reason for a hilarious send-up of Iceland's most famous celebrity, Bjork, on "Saturday Night Live" last week. Kristen Wiig's impersonation of her, with the volcano and Bjork "telling each other secrets." Here it is: