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But Iceland is the country experiencing financial ruination currently and recently proved be completely puffed up on the outer edge of a financial bubble.
Which I think (though it is overly flowery so I might be wrong) is the analogy they were going for. Being a British newspaper teh Icelandic financial situation is one that the British reader would be well aware of since Iceland's collapse came very close to bringing down the UK (Brits were putting a lot of money into Iceland investments).
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