The Swedish Model

I’ve reluctantly come to the conclusion that we ought to nationalize our failing banks. Interestingly, my support for this position comes from looking at Sweden’s experience during its banking crisis in 1992.
The Swedish government wound up spending about 4% of its GDP on their banks. But here’s the secret. The government owned the banks and made a killing. In fact, the nationalization may really have been self-financing.
I mention Sweden because the country isn’t socialist by reflex. It looks like the government is perfectly willing to let Saab go down the drain.

Posted by Eddy Elfenbein on March 23rd, 2009 at 8:06 am

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.