I must said when I see the events that are presently unfolding in Iceland I am very much reminded of that week in October 2008 when the entire Icelandic banking sector basically collapsed.
What we are seeing now is not necessarily an economic shock – I actually don’t think so – but it seems like a total collapse of the established political party structure in Iceland.
Things are changing minute by minute and the whole thing is quite surreal. I am not going to make any predictions about how this will end but Prime Minister Sigmundur Gunnlaugsson will soon by former Prime Minister.
It is only a matter of time before we have early elections and the big winner undoubtedly will be the Pirate Party. The only question will just how much support PP will get.
I still don’t think that PP will get a majority on it is own, but given the party was polling 35-36% in the opinion polls last week we could soon see support above 40%.
Iceland had a financial meltdown in 2008. Today it is a political meltdown. Will it also be a political revolution?
Update: The Icelandic PM has now stepped down.