Iceland was dumb in the lead-up to the 2008 financial crisis, but the U.K. and Holland were dumber. That’s the implicit message of a ruling by the European Free Trade Association (EFTA) court on Jan. 28. In a certain sense, the verdict is a reward for the abject failure of the Icelandic government to regulate its banks. But the EFTA court rightly concluded that the British and Dutch trust in a shaky overseas sovereign was even more idiotic.