FEDERAL RESERVE CONSIDERING NATIONALIZING BANKS
March 31st, 2008WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
Hmm. I wonder what the U.S. dollar will be worth in various foreign currencies after this? Or… Maybe it won’t be dinero, but more like… Amero?
If you have plans for using your already crashed U.S. dollars outside of the U.S. anytime soon, you might want to consider taking immediate action to protect your plans from whatever emergency measures are about to be implemented.
Via: Telegraph:
The US Federal Reserve is examining the Nordic bank nationalisations of the 1990s as a possible interim solution to the US financial crisis.
The Fed has been criticised for its rescue of Bear Stearns, which critics say has degenerated into a taxpayer gift to rich bankers.
A senior official at one of the Scandinavian central banks told The Daily Telegraph that Fed strategists had stepped up contacts to learn how Norway, Sweden and Finland managed their traumatic crisis from 1991 to 1993, which brought the region’s economy to its knees.
It is understood that Fed vice-chairman Don Kohn remains very concerned by the depth of the US crisis and is eyeing the Nordic approach for contingency options.
Scandinavia’s bank rescue proved successful and is now a model for central bankers, unlike Japan’s drawn-out response, where ailing banks were propped up in a half-public limbo for years.
While the responses varied in each Nordic country, there a was major effort to avoid the sort of “moral hazard” that has bedevilled efforts by the Fed and the Bank of England in trying to stabilise their banking systems.
