-Déjà vu all over again {Translation = Is the same thingfinancial crisis after financial crisishappening repeatedly?}
--Deposit insurance is not to blame for some of these banking crises
--The common feature of these crises is the existence of a government safety net, where the government stands ready to bail out troubled financial institutions.
-{See chart/table 2 of countries bank crises, costs/GDP; 1980-2005}
-{See map (Fig.2) of countries affected by financial/banking crises.} and, ASK why isnt the USA also red? (A systemic crisis in 2008 or not?)}
* Short Case Studies of Banking/Financial Crises in Other (non-USA) Countries:
= Scandinavia {1980s deregulation; real estate lending bubble; bubble bursting late 1980s and government bailouts/takeovers-nationalizations and resale to private owners}
-- Sweden (early 1990s): Bank crisis; nationalization and then reprivatization strategy
= Latin America (early 1980s; late 1980s/early 1990s; 2001) { 1980s liberalization; deregulation; privatization of state banks; excessive risky lending; real estate lending; bubbles & bursting; bail-outs; Argentina a special case of public indebtedness and currency board (fixed dollar basis for domestic currency) and general default in 2001 of public debt).}
= Russia and Eastern Europe {post-1991 and post-1989, respectively}
--- Eastern Europe: 1990-1996; 2008+ {privatization or permitting state banks to be run by self-interested management; bad loans; corruption; capital flight; bank crises and bailouts}
-- Russia (1992; 1995; 1998; 2008+) (autonomization of state banks; self-interested parties used banks as private cashboxes; first private banks created; inexperience and/or corrupt practices by many bank managements; bad loans, capital flight; bank panic of 1995; and fallout of bank speculative borrowing abroad in foreign currencies to speculate in higher local/domestic rates came to crisis when foreign exchange value of Ruble collapsed in 1998 causing widespread bank failures and led to Government bailouts for some while others cause large losses among depositors)
= Japan (1990s)
-- Deregulation of financial markets in the 1980s under strong pressure from the USA (for liberalization); massive real estate lending boom led to real estate bubble (special mortgage companies taking huge risks); lack of strict oversight; Bubble bursting by early 1990s; large scale bank failures; Government permitted fake valuation of assets for several years to prevent widespread bankruptcies, but stagnation of real economy meant that the financial and real sectors were not helping in economic growth; restructuring of late 1990s but still relatively stagnant real economy growth ratesstill recovering.
= China (1990s and 2000s)
--Chinese economy still dominated by 4 national state-owned banks that have made massive lending for real economy development their priority; many loans are non-performing (i.e. not being repaid according to loan agreements); successive restructurings; development of gray market (private, quasi-legal or illegal lending by shadowy figures) even currently; uncertainty about details of Chinese system due to radical decentralization (to provincial level) of fiscal and welfare, educational, and health system; Bubble in real estate heavily funded by loans and richer citizens; recent deflation of the bubble (2011) indicates potential problems but very centralized money/banking system means the Party dominates all decisions.
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= East Asia (1997)
--Deregulation, liberalization of finance and companies; some privatization of state monopolies; Inflows of large scale of foreign capital in 1990s promoting bubbles in real estate and stock markets; bubble bursting in 1997 beginning with Philippines, and spreading to Thailand and other countries and contagion later leading to Brazilian (and later Argentina) and Russian crises of 1998.
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* NEW PUBLIC POLICIES NEEDED?
