2008–2009 Icelandic financial crisis

The economy of the Norse peoples settled in Iceland evolved primarily around husbandry of cattle, pigs, and goats. Livestock provided an array of foodstuffs and wool, which was used to make cloth, while agriculture was geared more towards pastoral care and dairy farming than the cultivation of cereal grains due to the cold climates and poor soil. Their grains consisted mainly of oats and barley, which could be grown during the short growing season. Chieftains and wealthy individuals also relied upon

Causes of the Crisis On September 15, 2008, the American bank Lehman Brothers, with holdings over 600 billion USD, filed bankruptcy. This was by far the biggest bankruptcy in U.S history and it marked the beginning and the largest financial crisis ever. How can one of the biggest banks in the world fail? How can a bankruptcy in US make someone on the other side of the world unemployed? The answer is Collateralized Debt Obligations (CDOs) and it all started by new innovations in the financial sector combined

foreign direct investment (FDI) inflows reach a historic record of $1.9 trillion in 2007. Since then FDIs have been decreasing. The fall in global FDI in 2008–2009 is the result of two major factors affecting domestic as well as international investment. First, the capability of firms to invest has been reduced by a fall in access to financial resources, both internally – due to a decline in corporate profits – and externally – due to the lower availability and higher cost of finance. Second, the propensity