Just wanted to mention that the news made my day.

The recent months, parlament had passed the Icesave bill (paying back huge sums that the Icesave bank "lost" to foreign banks). The population of Iceland were never for it, with huge protests and a petition against the payouts that got signed by 1/4 of the voters of the entire country.
Today, the president of Iceland decided not to disappoint the people and veto the law that would have enabled the payouts. There will be a national referendum now.

I personally think we will see the huge discrepancy between parlament and the people with a 70-80% vote against the payouts. But let me just say I welcome this democratic process whatever the results may be.

I almost puked when I had to read/hear uniformly across all mainstream media how Iceland will now default on foreign "savers". These "savers" are to the largest parts foreign investment banks who were counterparties to Icesave in CDS (credit default swaps) derivatives gambles, and who probably knew they were going to fail. It's probably fraud and needs to be investigated. Large Chinese entities are also currently having a legal process around paying back derivative losses to US banks for the same reasons.

If Iceland pays, the IMF promised a 4 billion+ "rescue package" which is basically credit. So they pay ~4 billion in Icesave losses, then in return get ~4 billion from the IMF which are ~4 billion which they have to pay yet again, with interest. I find that pretty Orwellian :).

The entire African continent was prevented from industrialization and further development from the 70s onward by taking credit from the IMF and other "rescue packages" which they could never pay back and will never be able to pay back. I think Iceland is well advised to stay away from the IMF.