Sweden's Financial Crisis

A fellow skeptic points out [here] this neat article about Sweden's financial crisis in the 90s. They survived... by taking very different action:

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.

(...Now could someone stop the NYT from popping up windows whenever I highlight text? Fucking obnoxious.)

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