First Government Taken Down by World Recession: Iceland

Iceland's government bites the dust, according to this Financial Times article:

Iceland’s government collapsed on Monday, becoming the world’s first administration to disintegrate as a direct result of the global financial crisis.

The demise of the two-party coalition forced Geir Haarde, prime minister, to resign with immediate effect and left the country without a government amid its most serious economic crisis in recent history.

I don't think the collapse of Iceland's government comes as a big surprise to international investors...just take a look at the chart below that shows the tanking of the Icelandic Krona over the past year and a half.

Certainly looks like a flight of capital to me. Stay tough Iceland, hopefully things will get better for you soon.

TLT