Government On Ice

Reports coming in this morning that Iceland's government has collapsed and has resigned in disgrace -- not just the PM mind you, the entire government -- not three months after that country's massive bank collapse.

Prime Minister Geir Haarde announced the immediate resignation of his cabinet, after talks with coalition partners failed.

Iceland's financial system collapsed in October under the weight of debt built up during years of rapid growth.

The currency has since plummeted, with unemployment soaring. The economy is forecast to shrink by 9.6% this year.

In a series of protests, demonstrators have accused the government of leading the country to ruin.

Mr Haarde told reporters on Monday: "I really regret that we could not continue with this coalition. I believe that that would have been the best result."

That would make Iceland the second country's government to fail as a result of the financial crisis, the first of course being the GOP here.

Iceland is pretty much considered to be "worst case scenario" as far as the global economic crisis on individual countries so far. The key words there are so far. There will be more Icelands out there in 2009 and 2010.

There could be a lot more.