Crunch time

Two things are in very short supply at the moment:

(1) Credit; and

(2) Credibility.

Governments around the world are suffering from a loss of confidence. The first casualty was the United States.

The second casualty looks set to be Iceland. The Icelandic PM (Geir Haarde) has called Parliamentary elections for May 2009 (two years ahead of schedule).

Although Haarde himself is not standing, it looks likely that the ruling Independence-Social Democratic coalition government will fall anyway.

*More news as and when it becomes available*