Iceland

Icelandic government acts to avert economic collapse. The Icelandic parliament approved legislation that gives the government broad authority over the country's banks, including the ability to force them to merge or sell off subsidiaries as well as the ability to seize assets. The government is expected to fully nationalize Landsbanki and Glitnir soon, while a third bank, Kaupthing, was forced to accept state loans. Iceland's currency, the krona, lost 30% of its value against the US dollar in the past 30 days and 80% against the euro over the last year. Inflation has exploded to 14%. Interest rates are at 15%+.

MarketWatch has this to say...

It's hard to imagine a less politically popular move, but the way things are headed the first recipient of the $700 billion bailout money that Treasury Secretary Hank Paulson has to spend could very well be Iceland, which is in a financial meltdown.