How Billionaires Made Fortunes From Iceland's Economic Collapse

Added: 2026-05-20

[00:00:00]Did you know that while Iceland's economy collapsed and ordinary families lost everything, a small group of entrepreneurs made billions by betting against their own country? In 2008, Iceland's three major banks crashed with debts 10 times bigger than the entire country's wealth. Families lost their homes, their savings, their futures. But some people saw this tragedy coming.

[00:00:22]Thor Bjorgolfsson and Hannes Smarason quietly moved their money offshore and started shorting Icelandic assets. They were literally betting that their homeland would fail. And when it did, they swooped in like vultures. These men bought entire companies for 90% less than their worth. Luxury hotels, massive real estate portfolios, businesses that desperate owners had to sell for almost nothing. Then they converted their offshore millions back to Icelandic currency when it was worthless. While their neighbors stood in unemployment lines, these entrepreneurs became billionaires overnight. They turned Iceland's darkest hour into their golden opportunity. Some call it smart business. Others call it something much darker. The question is, what would you call it?