In May 2008, a team of analysts Moody's sovereign debt had to decide whether to downgrade the country's sovereign long-term debt from Aaa to Aa1 or lower. Investor sentiment towards Iceland changed dramatically in March, and the team Moody `s afraid that the situation could spiral out of control. Team Moody knew that carry traders increased vulnerability Iceland crisis of confidence, because they were quick to liquidate their stocks at the first sign of trouble. Plunge into Icelandic krona since 2008 also forced the Icelandic people to oppose a decision: whether to join the European Union (EU), Iceland protection from capricious fluctuations in investor sentiment? What, if anything, to Iceland to do to avoid a crisis in the future? "Hide
by Aldo Musacchio Source: Harvard Business School 24 pages. Publication Date: August 29, 2008. Prod. #: 709011-PDF-ENG
