Many Icelanders lost their savings, inflation spiralled, wages fell up to 25%, and many Icelandic assets abroad were frozen. Aid came via vast loans from the IMF and Scandinavian neighbours. Iceland also showed typical determination to deal with things their way. First, there was an admirable refusal by the government to bail out its disgraced bankers, forcing them to take the hit and the shame for their greed-fuelled stupidity and arrogance. The government devalued the currency by half, boosting exports for key industries like fishing. And slowly but surely, Iceland has clawed its way back to economic stability.

In the old Viking days - from the 8th to 12th century - Icelanders would probably have butchered their bankers, raided richer neighbours or sailed off to find new lands (as they did Greenland) – then written a saga about it (sounds good to me...). The 14th century ushered in centuries of largely unwelcome Danish rule, gradually eroded from the late 19th century onward. But final independence only came in 1944, after a spell of occupation by British then American forces during WW2. A formal US military presence remained through the Cold War, only ending in 2006. During those decades, Iceland rebuilt and modernised. A key factor was a booming fishing industry – which brought Iceland and the UK to blows in the 1970s 'Cod Wars' that saw nets cut and ships rammed on both sides. Fishing remains a key driver of Icelandic wealth – and attitudes to things like whaling.