Iceland's credit is up again because their jumbo banks were not too big to fail.

  Iceland let banks fail and arrested corrupt bankers. The island's bonds have been raised by Fitch to investment grade and recession is history.  Three short years ago they were the poster child for everything wrong.  Now, "Well on it's way to being the world's only normal country".  What did they do different?  They left the gamblers on the hook.  That's not complicated.  It isn't rocket science that you need an advanced degree to figure out.   Bailouts (popular with Irish, American and other governments) are the weasels' tool to shift all the debts coming due onto someone else, the taxpayers.