Trick. Forget it. We the "terrorists" in Iceland hail the fool in no. 10. It will certainly help us out of Nato and other costly and useless associations. Quite honestly Russia has been a long time friend of Iceland. We look forward to working closly with the Russians in building our economy.

Jona, Reykjavík,

Folks,

The icelandic authorities initially told the British that local icelandic deposits would be safe but foreigns savings won't be guaranteed flouting standard compensation rules - apparently the icelandic authorities were "very rude" about it. End of discussion. You reap what you sow!!!

Karl, Reading, UK

Britain could have offered a loan to Iceland on condition they made their banks sell all British operations immediately to someone solvent. We would have saved outselves some problems and bought a lot of goodwill. Instead, we abuse our laws to precipitate collapse in an ally's banking system. Why?

Rowan, Hereford,

The EU and US have left Iceland with no other place to turn.
"Better red than dead"

M.W., Reykjavik, Iceland

This is a tragedy. Does the poor standing in polls and dwindling support, drive Mr. Brown´s aggressive reactions in this matter? Did anybode say Machiavelli?

Is it possible that this action against Kaupthing may cause liability to the UK government, if it was unfounded?

Jon, Reykjavik, Iceland

Every year, councils publish their budgets and the government tops up the difference after local tax receipts (simplified).
So by what right do they find such huge sums to invest and for why. Surely they should stick to making life for citizens better not make money. thats one reason I left UK

Bill Newman, Torcy le Grand, Seine Maritime

Iceland has NO public dept. Instead it had an over sized banking sector a la US & Eruopean style. This sector has now been allowed to go into bankruptcy, and where normal bankruptcy procedures will have to be given time to clean up the mess. All EEC banking regulation and rules will be met.

GR, AAR Denmark,

What should Iceland do in times like this? Britains papers say that Britain are in a new cold ware with us. They use Anti Terrorist laws on our banks. The alliance with Britain is hanging on a very thin line here and Britain is doing nothing to improve it all though the Icelandic government needs it

Hjalti, Reykjavik, Iceland

This is pure necessity, I'd say there's no one in Iceland who isn't at least a little bit worried at the notion of inviting Russia in. Everyone knows the Russian bear does love to hug it's allies a little too tightly. But vs. potentially going bankrupt as looks possible desperation will win out.

Koru, Reykjavik, Iceland

I've seen my country going bankrupt twice: in 1991 and 1998 and I strongly wish Iceland to miss such experience. If these 4B € can do the trick, Iceland should use the opportunity. Country-wide bankrupcy sucks, guys, "don't try this at home" :)

Jurij Burkanov, Bonn, Germany

Russia is not a former superpower, it is a superpower

Scott, SM, USA

If you are old enough, you will remember Nasser pulling the same trick. When refused a loan to build the Aswan Dam, he turned around and got the money from Khruschev.

I think most people will allow that changed the history of the Middle East a little bit.

jon livesey, Sunnyvale, CA/USA

An historic blunder compounded by the utter abuse of our terrorist laws to insult and rebuff a neighbour and vital ally.
Iceland's position means that for the sake of 4 billion we have forced Iceland to deal with the devil. What a stupid, thoughtless blunder. God help us because no-one else will.

J Nowland, Leeds, United Kingdom

Our tax money is often raided for billions to spread corporate and political hegemony throughout the third world, yet when our friendly neighbours are in trouble they are rebuffed.

With friends like this... ugh...

I hope Iceland signs a good deal with Russia, I hate the EU, stick it to them.

Emily, Dublin, Ireland

Britain mourns the loss of its few pounds, whereas Iceland lost its economic legs. In one sentence Gordon Brown says that the whole of Iceland has defaulted, in another he talks about taking actions against the Icelandic authorities. Truly, who needs enemies when one has such friends at one's side?

Sophist, Reykjavík, Iceland