People of Cyprus: Follow the Vikings!

[Romero]

When the banks of the Sweden, Norway and Iceland went out of control, the people refused to bail them out, and the economies of all three countries were the better for it. Instead of allowing themselves to be bullied by international investors represented by the IMF and the European Union, the Cypriots who are facing a similar crisis today might want to learn from the Viking example.



The Cyprus banking sector went rogue to the point that it became eight times larger than the rest of the country's economy. Perhaps the bankers thought they would become too big to fail, requiring the country to rescue them. But why should citizens rescue bankers?



What democracy looks like when banks go out of control



In the 1980s, Norway and Sweden set aside what had been working for them — democratic socialism — and flirted with neo-liberalism. They deregulated, setting free the financial sectors. The private banks speculated, creating housing bubbles. By the early '90s, the bubbles burst. Both nations headed into crisis.



In Sweden, 90 percent of the banking sector experienced massive losses. Fortunately, the Social Democrats, the party of the working class, was in power and decided against bailouts. The government nationalized two of the banks, sheltered some that looked like they could survive, and allowed the rest to go bankrupt. Stockholders were left empty-handed.



As it turned out, three of the other large banks were able to raise necessary capital privately. Regulation was re-imposed and Sweden came back strong.



This Swedish version of "tough love" put the economy in such a strong position that when the 2008 financial crisis hit most of Europe, Sweden could use a series of flexible measures that minimized disruption. Its banks had already been cleaned up. Its famous social safety net kept Swedes accessing unemployment insurance, health care, education and job training.



The result: By 2011 the Washington Post was calling Sweden the "rock star of the recovery," with a growth rate twice that of the United States, lower unemployment and a robust currency.



When Norway's banks went out of control, the Labor government seized the three biggest banks of Norway, fired the senior management and made sure the shareholders didn't get a krone.



The now publicly owned banks were given new, accountable management and time to clean up. The government told the rest of the private banking sector that it were on its own: If bankers had money in their mattresses with which they could re-capitalize, fine; if not, they could go bankrupt. There was no way Norwegian citizens would bail them out.



The lesson for Norway's entire financial sector was unmistakable. No more moral hazard: Risk your own money, not other people's. Failing banks will be allowed to fail, no matter what their size.



The government gradually sold its shares in the banks it had seized and made a net profit. It kept a majority stake in the largest bank, probably as a safeguard to prevent the bank from being sold to foreign owners.



The St. Louis Federal Reserve Bank's vice president, Richard G. Anderson, studied the responses of Sweden and Norway to their parallel financial crises: "The Nordic bank resolution is widely regarded as among the most successful in history," he concluded. By bouncing back through effective governmental intervention, Norway and Sweden avoided the "lost decade" syndrome that dogged Japan after its crash in the early 1990s and that is now the reality for the United States and much of Europe.



But what if your government is in the hands of the 1 percent?



For decades, Iceland followed the "Nordic model," with high standards of living, free university education, universal health care, full employment and a robust labor movement. The government owned the major banks.



Then, in the late '90s, Iceland's political leadership shifted. It began to privatize banks and joined the international trend initiated by the repeal of the Glass-Steagall Act in the United States, a law that separates investment banking from ordinary banking. Now the banks were free to take ownership stakes in their customers' companies.



Building on Iceland's economic credibility, the largest banks opened branches abroad and bought foreign financial institutions. They made the Norwegian and Swedish banks' mistake of creating a real estate bubble, and then went beyond that by making high-risk loans to holding companies. Like Cyprus, Iceland's banks blew themselves up like balloons, becoming several times the size of Iceland's gross national product.



In 2008, Iceland suffered one of the worst banking collapses in history. Unemployment and inflation shot up. By September the Icelandic economy was in free fall.



The party representing the working class stepped in and pledged that there would be no bailouts, and the three largest banks therefore failed. The government made sure that Icelandic depositors got their money back and gave debt relief to struggling homeowners. For businesses facing bankruptcy but experiencing a positive cash flow, debts were forgiven. The government devaluated its currency in order to support Iceland's important export market.



Instead of trying to pacify international investors, Iceland created controls on the movement of capital. Instead of demanding austerity, the government expanded its social safety net. The result? Iceland is recovering. By July 2012 unemployment was hovering at 6 percent and falling. The economy was expected to grow by 2. 8 percent.



As The Independent's Ben Chu has pointed out, ever since the 2008 international crisis both European politicians and ratings agencies "have demanded that national governments honor the debts of their banking sectors, protect their exchange rates, eschew capital movement restrictions, and impose massive austerity to earn back the confidence of bond markets."



Iceland largely ignored those demands. Did the investors punish Iceland for being so smart and self-respecting? No. In June 2011, the government issued $1 billion in sovereign debt at 6 percent interest, an offering that was twice oversubscribed by investors.



It may be time for Cyprus to join Iceland in treating the bullies like, well, bullies. It may be the little countries that need to act like grown-ups and enforce accountability: Those who make the mess should clean it up. But it will take people's movements to make sure that happens, movements that have an idea what the alternative is.



http://www.commondreams.org/view/2013/03/23-5">//http://www.commondreams.org/view/2013/03/23-5

[Anonymous]

The stereotype many of us have of countries like Finland and Sweden is outdated as Odinson pointed out.

[Anonymous]

https://i.chzbgr.com/maxW500/6124234240/h2AE003AE/">

[Odinson]

I don't think so. Odie is not some hyper-sensitive braindead homo like EU. He doesn't seem to mind a little self-deprecating humour.

Damn.



Home sweet home is looking pretty good...  

[Anonymous]

http://cdn.returnofkings.com/wp-content/uploads/2012/11/finnishgirls.jpg">

1. The street fashion blog Hel Looks does not represent the typical style in Finland. While many girls like to wear bright pastel colors and other hipster garb, they don't typically look like freaks that just stepped off an intergalactic spaceship. Skrillex haircuts aren't as common as in Iceland and Denmark, and I ended up being surprised at how nicely some girls dressed. After the shock of the first day settled down (I did come from feminine Ukraine, after all), I wasn't all too upset with the level of talent I found. They are hands down more attractive than American women.

 

2. The biggest factor hurting the attractiveness of Finnish girls is not feminine or hipster style but obesity. There is a McDonald's literally on every block, and Finnish people have taken to it wholesale. You can only shake your head when you see a fat Finnish person waiting patiently in line to grab a burger or hot dog after a night of heavy drinking. This is a shame since Finnish people aren't genetically ugly. What ends up happening is that the hot girls have tons of beta orbiters who keep them entertained and busy because no one wants a fattie.

 

3. Girls are open to dating other races. I saw quite a few brown and black guys with Finnish girlfriends. The kicker is that these guys are speaking in Finnish, so they have integrated into the culture. Liberal guilt is so strong in Scandinavia that girls feel ashamed to not give minority guys a fair chance. You won't encounter racism here.

 

4. Day game is not the best way to meet girls. They are helpful if you approach, but they don't really bite, especially on the street (better responses can be had in coffee shops). Girls are not as shy as Icelanders but still significantly shyer than Americans. I didn't see the point in day gaming much when I found out that girls were more open at night due to self-drugging themselves with copious amounts of booze.

 

5. Girls are better looking than Danes and Swedes and are just a hair better than Icelanders. I think the reason that Finnish girls do well is because there has been genetic mixing from the East. Many girls have Slavic inspired faces that make you wonder if they're from Russia or Latvia.

 

6. Americans are quite novel in Finland. Maybe not as much as in the Baltics or Poland, but you'll meet a lot of people excited that you are from the States. Even if they hate American politics, they want to meet an ambassador to a culture that they generally enjoy.

 

7. People are incredibly friendly. One time I asked for directions and when I said "Thank you" they replied back with "Thank you." They also seem to be a very trusting people who take things at face value. I'm sure they get scammed a lot when they travel.

 

8. There are tons of East Africans, mostly from Somalia. The African girls seem to be aiming for a Rihanna look. There are also many cute Asian girls. If you get bored with Finnish girls you can try your hard at some of the more ethnic minorities.

 

9. The biggest flaw in Finland is that it's really only a summer destination. The winters are long, cold, and dark, meaning that vagina only comes out of hibernation in the summer to get pounded by American tourists. It doesn't help that "summer" can be relative: even when I arrived in early June I got to experience chilly weather.

 

Other cultural features I noticed: uncomfortable coffee shops that are more like food diners, a strong skateboard culture, and an obsession with sailor hats among graduating students.



If number 3 is true I am checking online for flights and Berlitz Finnish for beginners. :P

[Odinson]

I don't think so. Odie is not some hyper-sensitive braindead homo like EU. He doesn't seem to mind a little self-deprecating humour.

Damn.



Home sweet home is looking pretty good...  

Oh yeah, you would go out of your mind in Vancouver Odie. The white males look like that pic of the little homo in skinny jeans I posted. That isn't the saddest part of it though. Effeminate, lazy, nasty little morons like EU are what they are like. You get the worst of both worlds on the left coast of Canada.

Sure, I wear a long coat like these french-boys but the difference is that you can put army camo pants and army boots on me and I´m a soviet villain from a action-movie. :)

[Odinson]

Oh yeah, you would go out of your mind in Vancouver Odie. The white males look like that pic of the little homo in skinny jeans I posted. That isn't the saddest part of it though. Effeminate, lazy, nasty little morons like EU are what they are like. You get the worst of both worlds on the left coast of Canada.

Sure, I wear a long coat like these french-boys but the difference is that you can put army camo pants and army boots on me and I´m a soviet villain from a action-movie. :)

My husband feels like he needs to vomit when he sees little fruits like that guy in the pic. Absolutely no masculine features whatsoever.

How big is your husband?

[Odinson]

My husband feels like he needs to vomit when he sees little fruits like that guy in the pic. Absolutely no masculine features whatsoever.

How big is your husband?

Oh he's a big guy with big arms and and muscular chest. He has a temper on him too and effeminate white guys get on his nerves.

Well, amen to that.

[Odinson]

Oh he's a big guy with big arms and and muscular chest. He has a temper on him too and effeminate white guys get on his nerves.

Well, amen to that.

I can't stand effeminate guys. No ladyboys for me.

Too many these days take the ladyboy.

[Odinson]

I can't stand effeminate guys. No ladyboys for me.

Too many these days take the ladyboy.

There are some really manly guys in the West, but there are too many girly guys.

I met a client today who is from the arm of Finland... Way up north...



50 years old man, little bit taller than me and angry.



Long whalers coat, old one, worn down.

I got in a disagreement with him... Solved it. :)

The women talked about that guy at a break and I was like "get the fuck out a here".  



I got a gig dealing with immigrants and repairing their living-quarters... That ought to be fun. ;)

[Odinson]

There are some really manly guys in the West, but there are too many girly guys.

I met a client today who is from the arm of Finland... Way up north...



50 years old man, little bit taller than me and angry.



Long whalers coat, old one, worn down.

I got in a disagreement with him... Solved it. :)

The women talked about that guy at a break and I was like "get the fuck out a here".  



I got a gig dealing with immigrants and repairing their living-quarters... That ought to be fun. ;)

Is that a private arrangement on your own time or is through your company?

Private but I use partially the same workforce... Spare time job for the government.

[Odinson]

Is that a private arrangement on your own time or is through your company?

Private but I use partially the same workforce... Spare time job for the government.

Well, I hope you make good cash out of it.

It´s a nice amount of money. :D

[Odinson]

Well, I hope you make good cash out of it.

It´s a nice amount of money. :D

It seems that Finland is so expensive and the wages so low one almost needs a second source of income just to afford a few nice things.

A bouncer and an enforcer...

[Odinson]

It seems that Finland is so expensive and the wages so low one almost needs a second source of income just to afford a few nice things.

A bouncer and an enforcer...

Do what you have to do to make ends meet I guess. Finland seems like a tough country to get by on just one income. All countries are, but your cost of living being so high it is even tougher.

Well, first there´s the beating-squad... no money?? Then there´s the death-squad.



I don´t have to do it anymore.

[Anonymous]

Well, I hope you make good cash out of it.

It´s a nice amount of money. :D

It seems that Finland is so expensive and the wages so low one almost needs a second source of income just to afford a few nice things.

Do a lot of your fellow countrymen emigrate or at the very least consider emigration? I know I would if wages were that low while taxes and cost of living were that high.