Shivers and shrivels, the IMF is saying Iceland will have -8% GDP, +1.7% CPI this year. Note, their stock market has imploded.

A year after the banking crisis brought Iceland to the brink of bankruptcy, the island nation is mired in the deepest recession among advanced economies. The stock market has lost 97 percent of its value, and more than 780 companies have buckled under the weight of foreign currency loans as the krona plunged. Consumers refuse to borrow at Europe’s highest interest rates, and international banks reject requests for new financing.

Now here is what is interesting. Look at Iceland's disaster, yet their unemployment rate is 8.6%, which is less than the U.S.. Only Spain has a 18.2% unemployment rate.

Also note that Iceland's Prime Minster is now warning the economy may implode, i.e. double dip. So, do not believe because one addresses an immediate crisis which kicks the can down the road, all will be well. Iceland is a case in point.