The New York Times
January 23, 2009
Sweden’s Fix for Banks: Nationalize Them
By CARTER DOUGHERTY
The Swedes have a simple message to the Americans: Bite the bullet and nationalize.
Officials in Washington are trying to figure out how to shore up American banks that once ruled the financial world but now seem to weaken by the day, despite receiving hundreds of billions of dollars in government aid.
With Sweden’s banks effectively bankrupt in the early 1990s, a center-right government pulled off a rapid recovery that led to taxpayers making money in the long run.
Former government officials in Sweden, many of whom come from the market-oriented end of the political spectrum, say the only way to solve the crisis in the United States is for the government to be prepared to temporarily take full ownership of the banks.
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