Bank Rescue: The Swedish Model

About this Event
07 Jul 2009

Bank Rescue: The Swedish Model

About the speech:

Mr Lundgren's speech described in detail the causes of the Swedish banking crisis of the early 1990s and the steps he and his colleagues took to resolve it. He left his audience with the message that though no two financial crises are the same, three main challenges always exist: maintaining liquidity, maintaining confidence and restoring the capital base for lending.

After discussing the Swedish case in depth, Mr Lundgren gave a commentary on the history of the current financial crisis to date, focusing on the differing experiences and reactions of the USA and Europe.

The regulation of cross-border transactions, the performance of the Euro, the role of perception and the problem of moral hazard are just some of the ancillary issues that were addressed in this wide-ranging presentation.

About the speaker:

Bo Lundgren is Director General of the Swedish National Debt Office and economic spokesman for the Swedish Moderate Party. As Minister of Fiscal and Financial Affairs, he played a leading role in averting the collapse of the Swedish banking sector in the early 1990s.

Category:

News & Politics

Tags:

• Bank
• Rescue
• The
• Swedish
• Model
• Bo
• Lundgren

[scholion]

Today, Sweden is the one of the most well functioning Capitalist societies on Earth.

We don't have oil or a domestic market of a billion consumers.

Yet, we prosper because of our high levels of education, market and engineering know-how, our healthy companies and a stable tradition of maintaining Lutheran work ethics.

Furthermore, in the field of economic policy, we are not at home to Mr Cock up.

[TheWilliamcale]

look too much socialsim is a very bad thing i agree, i belevie in the market system to a point, but i think a little socialism is okay even theraputic for social harmony and the good health of a society for its stability, but just a bit

not too much

[callutt]

well, a euphoric utopia, then! but seriously, I think that sweden is a good country that has had an open ended, liberal market and a socialist welfare system. and that's the main thing that has made the country so great. so, sure I might be critical towards the system, but compared to other countries it works a lot better, i think.

[TheWilliamcale]

Utopia- euphoria is something you experience during rough sex and heavy drinking sessions..sweden is more than likely NOT a Utopia and ssweden HAS becaome much LESS socialist and that has helped itbecome a better nation

i think a society must find a balance

too far to the right or left is bad

too much governement is bad yes

but so is too little

[callutt]

would still be the number one way of travelling in the united kingdom. who knows?

[callutt]

and the only lines serving the country would run between the larger cities. about 1500 miles of railway was closed, and about 2000 rural stations. this is, from my point of view, probably the worst thing ever to occur in railway history. at least in the british. and when margaret thatcher came to power even she thought that deregulating the railways would be a step too far as far as deregulating goes.

and there you have it, if people weren't so greedy, maybe the rural british railway traffic

[TheWilliamcale]

the survey asked people how saisfied they were with there lives housing vacation time health care, it was done in a professional manner

[callutt]

is the british rail company, that was enormously much larger and more used than its swedish equivalent. in the 60's a man called dr. beeching made a proposal that would cut budget losses from the nationalised railways, to help britain save money. but it was a complete failure. the same thing happened: the closure of the smaller collector traffic tracks led to less profit on the otherwise very profitable main lines. if dr. beeching had had his dream come true, wales wouldn't have any railways,

[callutt]

but when they removed the collector traffic from the smallest tracks, the ones that were a little bit larger, and that ran with a slighty lower profit loss, suffered from less passengers, which led to larger profit losses, and, eventually, the closure of those tracks as well. and that's how it has continued ever since the 30's. today, most tickets that you buy are rather expensive, unless you book them several months ahead. this isn't really a desirable system, according to me.

another example

[callutt]

and gradually deregulated completely from the swedish state. and finally, in 2001, the company was divided into many smaller commercial companies with no governmental influence whatsoever. today, most people consider SJ's golden age to be in the late 20's to the early 30's, when it was the largest employer in sweden, with over 50 000 employees. but the government saw the railroads as something that should be run with profit, and that's why the smallest collector traffic tracks were closed,