Until I read the Guardian yesterday, I had not realised just how much Iceland was involved with the ownership of our economy. Clearly the country had diversified from fish and thermal energy into the UK's high street. I was rather surprised to see House of Fraser in Iceland's portfolio along with other significant high street brands. Now we learn that Philip Green has arrived in Iceland, looking to buy what he can in the Iceland closing down sale.
Iceland is technically bankrupt and the administrators are selling off the assets. The question now has to be asked which major companies in the UK are in danger of going under because of the financial and looming economic crisis. If they are retail companies, the government will not be rescuing them. The banks unfortunately are a special case as they are the blood system of the economy. If they are unable to ensure a flow of cash, the rest of the economy goes down.
Other strategic sectors of the economy may be heading for difficulties. There was passing reference to the transport system seizing up in the Observer today. At some point however there will simply be no money left in the system for the government to borrow to prop up everything. And then the real crunch happens.
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