The Pots and Pans Revolution — and Defiance Abroad

Abstract

By mid October 2008, Iceland’s banking system had collapsed and the country was in financial ruin. Mixing a libertarian ideology of privatization and market liberalization with weak public institutions and cronyist processes had proven to be a recipe for disaster. The public was in state of shock, uncertain of its economic future. This was not only a financial crisis but also a crisis of politics and a fundamental blow to our national identity, which was in tatters. Instantly, the public took to the streets, protesting against the government’s seeming incompetence in dealing with the crisis. Already in March, however, truck drivers had started a smaller and more segmented protest against rising petrol prices accompanying the sharp devaluation of the krona, which was devastating their highly leveraged business — many could no longer meet rising loan repayments. Now, in the wake of The Crash, the general public was taking to the streets, banging on pots and pans and other kitchen utensils. The government’s apparent weakness in responding to the UK attack, described in the previous chapter, added to the public’s frustration, especially when it had become clear that no money had illegally been moved out of the UK.