Today, Iceland suspended trading on its stock exchange for two days and the government took control of the country’s largest bank. The prime minister says the collapse of the banking system is putting Iceland at risk of “national bankruptcy.”
Central banks including the U.S. Federal Reserve and the European Central Bank have cut interest rates, and even China has now followed suit.
Marcus Mabry, international business editor of The New York Times, speaks with Martin Savidge about worldwide attempts to find relief and Iceland’s over-leveraged banking sector. Mabry predicts a global recession will persist for several years.