From a commenter:

I find it fascinating to read this blog. So many people seem to be able to write about things they clearly know almost nothing about. Iceland did NOT trade fish for finance. The fishing industry has always been our most important industry, and it still is. The banking sector grew so much in a short time, that it became no 1 for a year (I think, don´t have the actual numbers handy). It is also incorrect (and irritading) to say Iceland, because it was 3 BANKS, not the whole country, that went bankrupt. A part of Icelanders took foreign currency loans, not everybody.

I read somewhere that 10% of households foreign loans on their houses. I read the article in Vanity Fair and thougt it was really funny. It was deffinetly not meant to be taken seriously. I thought the part about exploding Range Rovers funny. I also read in an article that people were warned not to come here because of riots, bunch of people making noice with pots and pans, that sounds real dangerous.

Sentences like "Iceland is a giant hedgefund" work because they are sensational and catchy, and people need to find somebody who is in a worse situastion than they are. That is why it works.

Also New York magazine objects.