Reasons for despair: Zombie Ideas Won | 51 comments (51 topical, editorial, 0 hidden)

Re: Reasons for despair: Zombie Ideas Won (none / 1)

A broad consensus is now forming in Europe that we will need to move fast and introduce some form of asset relief to complement the measures already in place. Many countries are now looking seriously at the options on the table. Some are considering the possibility of setting up a 'bad bank' to absorb the impaired assets, others an insurance scheme.

In other words, Yurp is toying with the same stupid ideas -- bad bank, ringfencing, yaddayaddayadda -- that we're toying with.

Be nice to America. Or we'll bring democracy to your country.

by Drew J Jones (pedobear@pennstatefootball.com) on Sat Mar 21st, 2009 at 12:26:12 PM EST
[ Parent ]

Rubbish banks (4.00 / 5)

'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 ]

Re: Rubbish banks (4.00 / 2)

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 ]

Re: Rubbish banks (none / 1)

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 ]

Re: Rubbish banks (4.00 / 2)

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 ]

Re: Reasons for despair: Zombie Ideas Won (4.00 / 3)

That paragraph you quote is positively scary coming from a Spanish Socialist.

Most economists teach a theoretical framework that has been shown to be fundamentally useless. -- James K. Galbraith

by Carrie (migeru at eurotrib dot com) on Sat Mar 21st, 2009 at 01:55:06 PM EST
[ Parent ]

Reasons for despair: Zombie Ideas Won | 51 comments (51 topical, 0 editorial, 0 hidden)

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