" THIS IS A BAILOUT!"

[Ichingcarpenter]

[dkf]

1. What really scares me is that Treasury was getting details on what exposures and risks our firms

were taking.

They never did give us a rundown. But Paulson knows and he is FREAKING OUT.

[Ichingcarpenter]

2. He knew of this in August 07 when he started printing and pumping

money into the banks on so called loans to keep the system afloat.
On meet the press this June or July he told them everything was fine, when
it wasn't.

I'm glad his original plan is not going to be implemented which is what the photo suggested.

Now to fix this mess using either the Norwegian or Swedish mode.

[dkf]

3. Can you enlighten me?

Are those expensive?

[Ichingcarpenter]

4. I'll supply a couple of links

Why the Norwegian Bank Crisis of 1988 is Important!
by arendt

Tue Sep 23, 2008 at 05:42:26 AM PDT

During a lunchtime discussion, a European at our company pointed out that Norway had faced a banking crisis similar to ours twenty years ago; but that they had survived it at minimal cost. Sure enough, when I Googled it, I discovered:

Special features of the Norwegian banking crisis

The Norwegian banking crisis was a classic boom-bust crisis with some special, national features:

• Deregulation and liberalization paved the way for the boom
• Macroeconomic policies were largely pro-cyclical
• Lending growth became exceptionally strong
• Prudential capital regulations were relaxed (and)
• Supervision efforts were reduced

This may sound like "a deadly cocktail" (which in fact it turned out to be)

http://www.norges-bank.no/...

arendt's diary :: ::
My colleague also pointed out that the Paulson plan is taking exactly the opposite approach to the Norwegian response, which had a successful resolution.>>>>snip
http://www.dailykos.com/story/2008/9/23/82912/0254


Myths & Facts About Swedish Bank "Rescue"
Since I am from Sweden while most of my readers aren't, and since the bail-out of Swedish banks by the Swedish government in many American media reports have been said to be essentially the same as the bail-out propsed by Hank Paulson, and since this bail-out in these same media allegedly was a big success, I have recently received questions about it.

The truth is that first of all that the Swedish solution was much better than the plan proposed by Paulson or for that matter the Democrats. And secondly, while the plan was better than the ones proposed in Washington, it wasn't as big of a success as it is often asserted.

The background to the Swedish banking crisis was a ill-timed "deregulation" in 1985, where Swedish commercial banks were permitted to lend as much as they wanted in a time


http://stefanmikarlsson.blogspot.com/2008/09/myths-facts-about-swedish-bank-rescue.html

[Ichingcarpenter]

5. Another Article on the Swedish Plan from the NY times

Stopping a Financial Crisis, the Swedish Way



A banking system in crisis after the collapse of a housing bubble. An economy hemorrhaging jobs. A market-oriented government struggling to stem the panic. Sound familiar?

It does to Sweden. The country was so far in the hole in 1992 — after years of imprudent regulation, short-sighted economic policy and the end of its property boom — that its banking system was, for all practical purposes, insolvent.

But Sweden took a different course than the one now being proposed by the United States Treasury. And Swedish officials say there are lessons from their own nightmare that Washington may be missing.>>>>snip

http://www.nytimes.com/2008/09/23/business/worldbusiness/23krona.html?_r=1&em&oref=slogin