England-Iceland, Both Perhaps Toast?

Well we know that Iceland - a country that two years ago seemed to be one of the best places on Earth to live - is now toast, so why would anyone put the UK in the same category? Don't blame me, blame a well known Brit. It would seem Ambrose Evans-Pritchard (known for his over-the-top doom and gloom predictions) seems to think a U.K. default is in the chips. I do not think the international community will allow this to happen, or that it will happen, but we are certainly testing some previously untested limits. Time to hunker down. By the way, there is a good argument to be made that certain moves by Britain in response to Iceland's problems actually hastened the demise of one of it banks, so there is a bit of irony to the situation.

http://www.nakedcapitalism.com/2009/01/is-sterling-about-to-tank.html