http://www.zerohedge.com/news/2012-12-08/guest-post-icelandic-success-story
Iceland took the 2008 crash as badly as anywhere else. Now it is on the road to recovery. It provided debt relief to its citizens, let its lousy banks crash and may imprison as many as 200 banksters. We could have done the same and should at least have a political party advocating we do this now.
The economist in me feels the story likely more complex than the Zerohedge story above and I’m also sure e need structural change in our economy and ideologies. It makes no sense for us to live as debt-peons in a technological age of plenty. We are so thick we can’t even work out how much each household could have been given to pay off its own debts if we’d let the banks crash and divided out the £1.4 trillion given to them.
Allcoppedout's Blog 
But the Governement hasn’t given away £1.4 trillion. It has lent and guaranteed just over a trillion and most of it has been repaid. Your argument is disingenuous.