Iceland has become the first country to see its government fall as a result of the global credit crisis. A tragedy of excess has found its way into the heart of the democratic process.

Of course in a case such as this the ending barely surprises. In fact we never seem to be surprised at how excess and gluttony ends in tears. So perhaps its normal like a child who has too much ice cream, sweets or cakes. We know the ending but somehow stand by and watch because ultimately the child has to learn.

Nothing much really changes though.

The financial warriors of the ice nation rampaged through the European bazaars picking up companies like confetti. A sad tale signifying what? Same old, same old.

Th reality is that we always succumb to the bubble. It’s in our nature, it’s part of our make-up: a relentless and cored belief that somehow it’s all going to work out and we will have something for nothing.

And even in the deepest mess that is the US financial system crazy stories still appear. John Thain and his $40k or whatever toilet. Nice.

Nothing is new. Nothing has changed. It’s just bigger and makes a lot more noise.

As Frank Rich mused on Obama and the End of the Gilded Age,

He spoke of those at the economic pinnacle who embraced greed and irresponsibility as well as the rest of us who collaborated in our “collective failure to make hard choices.” He branded as sub-American those who “prefer leisure over work or seek only the pleasures of riches and fame.” And he wasn’t just asking Paris Hilton “to set aside childish things.” As Linda Hirshman astutely pointed out on The New Republic’s Web site, even Obama’s opening salutation — “My fellow citizens,” not “fellow Americans” — invoked the civic responsibilities we’ve misplaced en masse.

Let’s face it we all want to make loadsamoney……on our houses, investments, crazy schemes…..but the truth is it’s just a facade. But like Versailles it will linger on in our minds for years to come.

Tags: credit crunch, excess, financial crisis, Iceland, markets, money, zeitgeist