|From Guardian: Back in 2007, Norway's $455bn sovereign wealth fund had made a decision to bet on the misfortune of Iceland's banking sector. Iceland was furious, and the Norwegians retreated. Yet a small band of Scandinavian economists and bankers remained utterly unconvinced by the stability of Iceland's banks.
Concerns centred on overinvestment in retail, leisure and property in northern Europe and the UK at the peak of a consumer boom. The Iceland bank sceptics pinged around emails depicting a spider's web of overlapping ownership. Funding dried up, and credit markets indicated Icelandic banks were the riskiest in Europe.......................Full Article: Source