The first country to be hit hard by the recent economic downturn, Iceland, will be loosing its' two McDonalds. Considered a microcosm for the world's financial systems, until the global credit crunch of last year it was a financial miracle with the highest GDP per capita in the world.

Iceland’s Housing Finance Fund (Íbúðalánasjóður) today lowered its interest rates. The general mortgage rate has now fallen to 4.7 percent from 4.9 percent. Interest on mortgages without prepayment clause is now 5.2 percent instead of 5.4.

The newly formed Icelandic coalition, interm government will take office today, according to a coalition leader. The new government will also include a new prime minister, Jóhanna Sigurðardóttir, the country's and the world's first openly gay prime minister. A commissioner in Brussels has suggested that Iceland could be fast tracked to join the European Union (EU) by 2011.

Iceland's coalition government resigns after the economy goes bankrupt. Thus Iceland becomes the first casualty of the falling global economy.

Riots take place in Iceland today due to the current financial crisis. People have gone on the streets of Reykjavik revolting against the financial crisis, corrupt ministers and he authorities who caused it.

A strong earthquake occurred in Iceland today, about 30 miles southeast of Reykjavik at 11:46 EST, reports IceNews. The earthquake was felt in Reykjavik but nothing fell down from walls, according to the news agency.

Iceland's biggest bank Kaupthing Bank Hf. canceled the 3 billion-euro ($4.4 billion) purchase of Dutch investment bank NIBC Holding NV because of 'instability in the financial markets.''

Iceland is the world's most desirable country to live in, followed by Norway and Australia, according to an annual United Nations table.

In a setback to the whaling industry worldwide, Iceland's fisheries minister has just announced he will not issue further commercial whale-hunting quotas.

Many scientists believe that the ice ages exterminated all life on land and in freshwater in large parts of the Northern Hemisphere, especially on ocean islands such as Iceland.