The credit squeeze has already claimed countless victims, from subprime home borrowers to Swiss banks. Now the financial tsunami is sweeping over tiny Iceland. Toxic mortgages aren't to blame; easy global credit is. Between 2000 and 2007 the country's banks embarked on a consumer lending spree financed by foreign capital. Now, to keep hot money from fleeing, Iceland's central bank has had to jack up interest rates to 15%. The economy, which grew at close to a 4% annual clip over the past decade, has slowed to a crawl. It's another example of how globalization often hits the little guys hardest.