- Political unity.
- Blanket guarantee of deposits and bonds.
- Swift policy action.
- Taking a systemic approach over ad
- Full disclosure.
- Nationalization of insolvent banks; splitting them into "good" and "bad" components, then selling the good and eventually resolving the bad, etc.
- Your everyday basic Keynsian suprluses in the good times so you're in a sound position to run your basic Keynsian deficits in the hard times.
Well, we're going to show these high-on-the-horse Swedes what America is all about. We'll do exactly the opposite of everything they did! Even better: we'll follow the failed Japanese policy reaction almost to the letter, while insisting that we're doing the opposite of what the Japanese did, while what we're really doing is the opposite of the Swedes, while also exploring new and innovative ways to socialize risk for private profit in the name of not following the Swedish model. We call that last part the unique American culture of financial crisis.
We should probably be doing just about everything the Swedes did, at least it'd be an actual start. The only really uniquely American innovation in the creation of this disaster - aside our accepted social norms of fraud and predatory lending - was the credit default swap. Swedish models can't tell us what to do about those.
:: posted by buermann @ 2009-03-11 15:36:06 CST |