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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: gladman who wrote (10814)	7/17/2008 4:09:58 PM
From: jim_p	Respond to of 50102

The only examples of extreme de-leveraging in history are with Finland in 1991, Japan back in 1991, Norway back in 1987, Sweden, the S&L crisis and of course the great depression. In each case the time period to de-leverage took 8-11 years and we now have the highest leverage since the 1930's. 12. The 1991 credit bubble in Finland ended up with the government taking control of 31% of the banking sector and supporting 41 of the S&L’s with guaranties and loans costing the taxpayer 11.2% of GDP. The 1991-2002 Japan credit bubble ended up costing the taxpayers $500 billion in public funds for loan losses, seven banks nationalized, 61 financial institutions closed and 28 merged for a total cost of 24% of GDP. The 1987-1993 credit bubble in Norway ended up with the governments taking control of 85% of the banking system assets for a total cost of 8% of GDP. The Sweden credit bubble required the government to guaranty all of the banks losses for a total cost of 4% of GDP. The US S&L crisis ended up with 1,043 S&L’s closed at a total cost of only 3% of GDP. Today’s credit bubble is the largest bubble in history and we are in no position to use taxpayer money to bail out the system given our current deficits, projected entitlement costs and on the going costs of the war in Iraq? Message 24447482 Jim