How Sweden Weathered Its Financial Crisis

An article from the Times about what the US can learn from Sweden's economic crisis in the 90s. Excerpt:

Sweden did not just bail out its financial institutions by having the government take over the bad debts. It extracted pounds of flesh from bank shareholders before writing checks. Banks had to write down losses and issue warrants to the government.

That strategy held banks responsible and turned the government into an owner. When distressed assets were sold, the profits flowed to taxpayers, and the government was able to recoup more money later by selling its shares in the companies as well.

Yay, Sverige! (One has to wonder, though, how in the hell they managed to turn rightward after an economic crisis like that. People I talk to who live there---who are NOT rich---are pissed off at the government. They hate it and can't wait to oust the righties in the next election. I certainly hope that Swedes, and the world in general, have noted from the US's current troubles that this idea of oober-freemarket capitalism is SCREWED. It. does. not. work.)

Beep!