Swedish state's holdings outperform Stockholm exchange

www.thelocal.se ^ | 01/02/2010 | WesternCulture

[WesternCulture]

The lesson to be learned from Sweden of today (a nation lead by a - predominantely - Conservative government) is that during a global finacial crises, a government brave enough to sell off some formerly nationalized businesses to the free market could finance tax cuts and pay off national debt.

I guess this is preferable to one striving to take on hefty loans in order to try and save unhealthy companies and launch costly health care reforms.

But, it's not for me to say in the case of America, as I'm not a citizen of that country (although I sure view America as the only true ally Europe has in this world - well, Canada, Australia, New Zealand and some others also are on our side I imagine).

Anyhow, our government has already sold V&S (with brands like Absolut Vodka). If they'd choose to sell mining giant LKAB, train operator SJ and some other companies that ought not to be government run, no one over here would have to pay income taxes for a year or so. Okay, Sweden is a small country, but imagine how such a reform could aid domestic sales of Volvos and SAABs!

The article:

"The value of the Swedish state's stock portfolio grew by 55 billion kronor ($7.66 billion) in 2009, putting its current value slightly higher than it was in early 2007 before the financial crisis hit.

The value of the Swedish state's stock portfolio has grown by 55 billion kronor ($7.66 billion) in 2009. Its current worth is somewhat larger than it was in the first half of 2007 before the financial crisis hit, reports Svenska Dagbladet newspaper.

At the beginning of 2009, the state's shares in Nordea, Telia Sonera and SAS were valued at just under 95 billion kronor, the Svenska Dagbladet (SvD) newspaper reports.

As of Monday, the portfolio's value had grown by 58 percent to 150 billion kronor, outpacing the 48 percent growth posted by the Stockholm stock exchange during 2009.

According to the E24.se financial news website, Nordea has been the main growth driver for Sweden's investment portfolio.

Shares in the Nordic banking group have seen their value climb by 74 percent since the beginning of 2009. The value of SAS shares, on the other hand, has decreased by 32 percent.

The rise in the value of the Swedish state's holding puts it back in the top spot as largest shareholder on the Stockholm exchange, a position it lost earlier in the year to Hennes & Mauritz owner Stefan Persson.

Persson's shares in the clothing retailer are now valued at 116 billion kronor, up 32 percent for the year."

[massmike]

read later

[smokingfrog]

The Swedish state has a stock portfolio?

How does that work - the value of the stock in companies that are owned by the state?

[WesternCulture]

“The Swedish state has a stock portfolio?

How does that work - the value of the stock in companies that are owned by the state?”

- If a certain company is owned entirely by the state, then I guess it’s down to sheer theory.

But if the state ownes say, 30% of a company and the rest is owned by the public, it would be easier to tell what the government’s share actually is worth on the market.

[MSF BU]

The US Government has a stock portfolio. We own large amounts of automobile and bank common and preferred stock.

[NVDave]

There were many advocating that we implement some form of the “Swedish model” of how to deal with banks that are “too big to fail, yet they’re a failure” - and instead, we decided to go with the “Japanese model:” Keep shoveling money into them with tricks and games and let the cancer spread throughout the financial system.

Sweden had their own bank implosion in the early 90’s and they’ve come away from it much better off than many countries who have gone through the same thing.

[AIM-54]

I’ve been wondering if besides the folks at Timbro, are there an other free market and/or libertarian advocates in Sweden? If so, they seem to keep a low profile.