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March 31, 2009

Overnight Open Thread: Sweden Declines to Bailout Saab, Socialism Falling out of Favor in That Nation (genghis)
— Open Blog

We have officially entered The Twilight Zone. Article is from the International Herald Tribune (of which the NYT is a partner)

TROLLHATTAN, Sweden - Saab Automobile may be just another crisis-ridden car company in an industry full of them. But just as the fortunes of Flint, Mich., are permanently entangled with General Motors, so it is impossible to find anyone in this city in southwest Sweden who is not somehow connected to Saab.

Trollhattan? That pretty much describes every night around here lately. Sorry to interrupt.

Which makes it all the more wrenching that the Swedish government has responded to Saabs desperate financial situation by saying, essentially, tough luck. Or, as the enterprise minister, Maud Olofsson, put it recently, The Swedish state is not prepared to own car factories.
Such a view might seem jarring, coming as it does from a country with a reputation for a paternalistic view of workers and companies. The Swedish model for dealing with a banking crisis nationalizing the banks, recapitalizing them and selling them has been much debated lately in the United States, with free-market defenders warning of a slippery slope of Nordic socialism.

Its a lengthy article, but worth slogging through.

Notice: Posted by permission of AceCorp LLC. Please e-mail overnight open thread tips to xgenghisx@gmail.com. Otherwise send tips to Ace.

Posted by: Open Blog at 07:06 PM | Comments (14)
Post contains 254 words, total size 2 kb.

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