system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: I´ve been reading that Iceland didn´t bail out their banks but bailed out the people. What does that mean, and how did they do it?
gpt
They basically said "we will bail out domestic depositors, but not international investors". Most of these international investors had already been bailed out through their own banks who expected Iceland to make good on its promises. When Iceland reneged on the deal, there was a lot of pressure on Iceland to make good on it, both in courts and through international diplomacy. It's still not fully resolved.

The line that "they bailed out the people, not the banks" looks good on a Facebook meme. But the reality is they bailed out their own people by screwing over British and Dutch banks and investors, because Iceland's banking fund for such things was not properly capitalized.