Sunday, November 30, 2008

Sweden's Path, Not Japan's, Can Guide Cleanup

In tackling cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 national economic downturn, President-elect Barack Obama and his newly appointed economic team might want to study how Japan and Sweden weacá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365red similar storms during cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 1990s. Sweden's response to its crisis is widely considered a model. The Swedish government and central bank in 1992 quickly stabilized cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 krona and reversed contractions in gross domestic product and a rising unemployment rate by allowing some banks to fail, recapitalizing ocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365rs and isolating bad assets. In two years, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 country's economy was growing again. Tokyo's piecemeal steps, meanwhile, ushered in a "lost decade." The economy stagnated until zombie banks propped up by cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 government finally succumbed. The Japanese economy took almost a decade to right itself, and while most of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 country's major banks have shed nonperforming loans dating from cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 crisis, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365ir profitability today hovers around levels of 10 years ago. The paramount lessons for nations battered by financial crises are: Act quickly, consolidate cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 financial sector and pursue cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 right balance of recapitalizing banks and isolating troubled assets. Sweden did all three and Japan arguably did none, taking timid and unsuccessful measures for years before a new government forced sweeping action in 1998. "Some say cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 Japanese government did nothing for 10 years, but that's not really cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 case. They tried things and cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y failed," said Takeo Hoshi, a professor of economics at cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 University of California, San Diego. Among cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 failed ideas was establishing asset-management companies that didn't buy enough distressed assets and held on to those cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y did acquire instead of restructuring and selling cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365m. In Sweden, authorities took a hard-line policy intended to weed out failing banks. Early in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 crisis, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 country made substantial capital injections, purchased troubled assets and temporarily nationalized some surviving banks. Sweden disposed of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 bad loans briskly, liquidating cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365m by 1997 so cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y couldn't linger as a drag on cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 economy. Stockholm's strategy succeeded in part because policy makers were clear about cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365ir goals and demanded transparency in banks' accounting, to identify and contain weak spots. "The goal in Sweden was to rehabilitate cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 system quickly by creating a smaller number of viable institutions out of many ailing ones," said O. Emre Ergungor, an economist at cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 Federal Reserve Bank of Cleveland. In 1988, before cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 crisis, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365re were 525 banks in Sweden; in 2000, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365re were 124. That cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 Swedish government proceeded with cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 same transparency it exacted from banks also was crucial. "The key here was not to play games with investors or taxpayers," Mr. Ergungor said. When Sweden began to sell cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 distressed assets, "cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 market didn't think, 'What is cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 government trying to hide now?' " In Japan, officials loath to recognize that banks were failing didn't craft a sweeping coordinated plan as circumstances got worse. The government resisted capitalization measures because using public funds to prop up tottering institutions was hugely unpopular with taxpayers. Tokyo's indulgence ceased abruptly after a major bank and a securities house collapsed in 1997. The next year, political leaders backed capital injections and determined that cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 financial sector's survival depended on consolidation. The nation went from having roughly 20 big banks in 1990 to half a dozen today. In taking on cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 crisis, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 U.S. has advantages that Japan and Sweden didn't, including a strong currency and a low inflation rate. The U.S. also faces liabilities that weren't factors in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 1990s, and that could complicate solutions to today's crisis. Any recovery will have to unfold amid recessionary conditions that began at home and spread around cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 globe. The U.S. has acted swiftly but erratically, executing "crisis management on cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 fly," said Gerald P. O'Driscoll Jr., a senior fellow at cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 conservative Cato Institute and a former vice president at cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 Federal Reserve Bank of Dallas. After an initial stumble, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 Treasury Department pushed a $700 billion rescue plan through Congress, establishing cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 Troubled Asset Relief Program to buy toxic assets through a reverse auction. Shortly cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365reafter, Treasury changed its focus to capital injections, which U.S. officials argue shows flexibility -- but which markets may interpret as indecision. In mid-November, Treasury Secretary Henry Paulson scrapped cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 plan to buy troubled assets from financial institutions. Mr. Paulson said cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 government planned to continue capital injections and start assisting consumers through programs such as stepping up student loans and preventing foreclosures. Last week, Mr. Paulson followed through on that plan, announcing $800 billion in assistance -- largely from cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 Federal Reserve -- to credit markets. Mr. Paulson and Fed Chairman Ben Bernanke have "sowed uncertainty repeatedly and serially," Mr. O'Driscoll said. "No one knows if cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y're going to get bailed out or not." Many banks are wondering whecá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365r cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 institutions that received capital injections will use cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 public funds to resume lending or to acquire smaller rivals. The U.S. also hasn't followed Sweden -- and ultimately Japan -- in taking cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 politically charged step of forcing comprehensive consolidation in cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 financial-services industry. "If we all agree that cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365re was a credit bubble, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365n cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365re has to be a contraction in credit," said Adam Posen, deputy director of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 Peterson Institute for International Economics. Pursuing a policy of consolidation is "a genuinely difficult thing to do. That's why cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 Swedish political class in '92 and '93 and cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 Japanese political leadership in 2002 deserve credit." Thus far, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 U.S. crisis has claimed few high-profile casualties, such as Lehman Brocá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365rs Holdings, which sought bankruptcy protection in September. Government intervention preserved insurer American International Group, put mortgage giants Fannie Mae and Freddie Mac into conservatorship and blessed J.P. Morgan Chase's takeovers of Bear Stearns and Washington Mutual. At cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 end of November, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 government gave ailing Citigroup a reprieve through a patchwork of remedies, including injecting $20 billion in capital and guaranteeing some troubled assets. Treasury has said its priority is righting cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 banking system, not consolidating it, although federal rescue efforts may lead to some thinning of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 ranks. Just as members of Congress rejected cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 first draft of cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 TARP legislation, cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365y are likely to resist bank closings or takeovers. Mr. Obama has an opportunity to take a step that may exact a short-term political cost and yield a long-term economic gain.

4 comments:

Anonymous said...

i have gone through your site information and it is cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 sae oppertunity that i was looking for thr facilities,
cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 process that what you are offering , are perfectely matched to my expection, very soon you will get
responce from my side


online job

Anonymous said...

Earning money online never been this easy and transparent. You would find great tips on how to make that dream amount every month. So go ahead and click here for more details and open floodgates to your online income. All cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 best.

Unknown said...

Well done!
I am very grateful for cá cược thể thao bet365_cách nạp tiền vào bet365_ đăng ký bet365 info on your blog.
Great posting. Very informative too.

Visit also sromobazar.com

Al-Habib Marketing said...

Khanial Homes Currently, this attractive residential project offers both residential and commercial plots. Available sizes for residential plots are 5 Marla, 6 Marla, 8 Marla and 10 Marla. In addition, you can invest in 1 Kanal and 2 Kanal residential plots. Meanwhile, commercial plots for sale are 3 Marla, 5 Marla, and 8 Marla in size.