Wednesday, October 1, 2008

More on how the Swedish did the Bail Out

Where Else? The Guardian: The Bad Bank that Came Good.
So, the two key elements of the Swedish model were: banks had to give the government a stake in return for funding and the taxpayer was protected. In fact, according to Bildt in a comment piece in the International Herald Tribune, the taxpayer actually made a profit.

In other words, the two things NOT in either Monday's failed plan or today's proposed vote.
In all, the Swedish authorities injected SEK65bn (£5.3bn) into the banking sector. The equivalent then of 4% of the country's GDP or, according to some analysts, $850bn in the US case today - a shade more than envisaged by the Paulson/Bernanke plan.

That talks me off the ledge somewhat, that we're proposing less percentage-wise than what they invested. The problem is that we're essentially proposing to give it away. Swedish taxpayers recouped their losses.