Comments on: The Swedish banking crisis response – a model for the future? http://www.creditwritedowns.com/2008/08/swedish-banking-crisis-response-model.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: MQ http://www.creditwritedowns.com/2008/08/swedish-banking-crisis-response-model.html#comment-309 MQ Fri, 19 Sep 2008 17:06:00 +0000 http://www.creditwritedowns.com/2008/08/the-swedish-banking-crisis-response-a-model-for-the-future.html#comment-309 I think the longer version of the piece is even more interesting:<br/><br/>http://www.riksbank.com/upload/Dokument_riksbank/Kat_publicerat/Artiklar_PV/qr96_1_artikel1.pdf I think the longer version of the piece is even more interesting:

http://www.riksbank.com/upload/Dokument_riksbank/Kat_publicerat/Artiklar_PV/qr96_1_artikel1.pdf

]]> By: Eric http://www.creditwritedowns.com/2008/08/swedish-banking-crisis-response-model.html#comment-308 Eric Fri, 19 Sep 2008 16:23:00 +0000 http://www.creditwritedowns.com/2008/08/the-swedish-banking-crisis-response-a-model-for-the-future.html#comment-308 The U.S. seems to be adopting the Swedish approach today. However, two important differences, I presume, are that Sweden was already a socialist country and second, did the average banking employee in Sweden earn over $1 million per year (as Goldman Sachs employees did in 2006)? <br/><br/>The first is a cultural issue - the U.S. is (has) largely decided to socialize the risks of its banking system but most have not viewed the U.S. as a socialized country. This is a big cultural shift in the U.S.<br/><br/>The second is that in the U.S. the bankers who profited handsomely from their own actions will continue to retain their past - and very large - personal gains. <br/><br/>Most of us will now pay for their past gains as we absorb most of their risk taking - with most of us never having received benefits from their past upside. The U.S. seems to be adopting the Swedish approach today. However, two important differences, I presume, are that Sweden was already a socialist country and second, did the average banking employee in Sweden earn over $1 million per year (as Goldman Sachs employees did in 2006)?

The first is a cultural issue – the U.S. is (has) largely decided to socialize the risks of its banking system but most have not viewed the U.S. as a socialized country. This is a big cultural shift in the U.S.

The second is that in the U.S. the bankers who profited handsomely from their own actions will continue to retain their past – and very large – personal gains.

Most of us will now pay for their past gains as we absorb most of their risk taking – with most of us never having received benefits from their past upside.

]]> By: Edward Harrison http://www.creditwritedowns.com/2008/08/swedish-banking-crisis-response-model.html#comment-219 Edward Harrison Thu, 28 Aug 2008 12:16:00 +0000 http://www.creditwritedowns.com/2008/08/the-swedish-banking-crisis-response-a-model-for-the-future.html#comment-219 MAB,<br/><br/>The bastion of fiat will soon be forced to make a bailout decision. It would be nice if they made one sooner rather than later. They are probably using the motto, "Don't think, react."<br/><br/>http://www.creditwritedowns.com/2008/08/quote-of-day-27-aug-2008-dont-think.html MAB,

The bastion of fiat will soon be forced to make a bailout decision. It would be nice if they made one sooner rather than later. They are probably using the motto, “Don’t think, react.”

http://www.creditwritedowns.com/2008/08/quote-of-day-27-aug-2008-dont-think.html

]]> By: MAB http://www.creditwritedowns.com/2008/08/swedish-banking-crisis-response-model.html#comment-160 MAB Wed, 13 Aug 2008 15:43:00 +0000 http://www.creditwritedowns.com/2008/08/the-swedish-banking-crisis-response-a-model-for-the-future.html#comment-160 Ed,<br/><br/><i>Why this plan has not been more widely discussed remains a mystery.</i><br/><br/>A small country like Sweden is one thing. The bastion of fiat is another. <br/><br/>Absent faith, all fractional reserve banks are insolvent.<br/><br/>We have serious problems. Ed,

Why this plan has not been more widely discussed remains a mystery.

A small country like Sweden is one thing. The bastion of fiat is another.

Absent faith, all fractional reserve banks are insolvent.

We have serious problems.

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