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'Rubbish Banks' were used successfully in the Nordic countries in the early 90s. On a smaller scale of course, but as I understand it, a decade and a half later, both Sweden and Finland managed to reprivatize the assets without overall losses.

Finland Offers EU Experiences in Financial Crisis Management

In Vanhanen's view, pumping more money into economic stimulus is not the right way to fight a recession. Instead, he calls for going into the core of the crisis by cleaning away bad credit.

However most of the acquired 'rubbish' was still 'performing', but needed additional capital, reorganization and market consolidation.

You can't be me, I'm taken

by Sven Triloqvist on Sat Mar 21st, 2009 at 12:41:38 PM EST
[ Parent ]
I believe Finland has not much to offer. Finland was saved by Nokia in the 90's and the housing prices never recovered (until last year). If Vanhanen thinks the same system works this time, i believe he is mistaken.
by kjr63 on Sat Mar 21st, 2009 at 05:29:28 PM EST
[ Parent ]
Of course, if Vanhanen means debt relief to home owners, then it is another matter.
by kjr63 on Sat Mar 21st, 2009 at 05:31:21 PM EST
[ Parent ]
I would suggest it was 3.5 % GDP annually invested in R&D (which includes Nokia) that saved Finland.

You can't be me, I'm taken
by Sven Triloqvist on Sat Mar 21st, 2009 at 06:22:28 PM EST
[ Parent ]

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