The Icelandic financial crash explained in in 6 minutes!

In the early 21st century, Iceland experienced one of the most spectacular cycles of boom and bust in history.

For centuries, Iceland was a simple fishing society, largely shut off from mainland Europe. The people survived off the sheep in the meadows and the fish in the sea. For cultural sustenance they had elaborate sagas — intricate tales of fairies and goblins, heroes and ghosts — that would inspire J.R.R. Tolkien and other fantasy writers.

At the peak of Iceland’s boom, Stefan Alfsson left his fishing boat and started trading commodities for an investment bank. “We could do more,” he said. “I got a bigger house, bigger and more cars, better snowmobiles.”

Then a modern saga began to unfold — that of a nation of fishermen who became millionaires, only to lose it all and return to the seas.

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