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Both US and EU should have done the same as Norwegian Government did during our banking crisis in the 90s. Let the banks fail, stocks to zero, no bailout of inv
by KarlRutnick 8y ago
Both US and EU should have done the same as Norwegian Government did during our banking crisis in the 90s. Let the banks fail, stocks to zero, no bailout of investors or paper/derivatives holders etc... then nationalize their brick and mortar operation so the real economy keeps functioning
- pas 8y agoMuch of the economy is not brick and mortar anymore. And wasn't in 2008 either. Sure, Congress could have created an Uncle Sam bank, but that wouldn't have solved anything. Stocks, investors, bondholders are important, because they underlie much of US pension plans, social security account, and so on. And even if the day to day operations could have been somehow continued, someone would had to arbitrate what is okay to save, and what is okay to let it perish. And that would have been a much harder and basically impossible task.
- seppin 8y agoNorway is a small country, and in the 90s had very little exposure elsewhere. What you are implying is a meltdown of global assets, to prove a point.