Free University of Tbilisi

By Vasyl Khomiak
As all of You well know nationalization is one of the classic instruments of government in the time of cries for stabilizing economical situation. This instrument was used by Britain Government in the 8-th of October. Near 50 bln pounds were allotted from government to the banks. 25 bln pounds were received by the leading banks: Abbey, Barclays, HBOS, HSBC, Lloyds TSB, Nationwide Building Society, Royal Bank of Scotland and Standard Chartered.

As leaders of the government explained, this was the only way out for stabilization of the banking system. Government bought preferred shares of the banks in trouble. Minister of Finance Alister Darling claimed that Government wouldn’t manage banks, only give them support. (more…)

By Vasyl Khomiak
In fact, it’s really the first global capitalistic cries that post-soviet countries should go through. And, may be, for this reason economical policy of some governments looks as behavior of people who have seen snow at first time. So, may be, it would be interesting topic for discussion how government in each country tries to withstand with cries, which problems have governments of different courtiers addressed, which of these problems are typical for the crisis and which are made by wrong policy. As I am presenting Ukraine I will present actions of the government of my country.

The first problem connected with crisis is fear and panic that was created by government and mass-media policy. Despite the fact that, even in April, several economists forecasted crisis, in October, leader of Ukrainian government stated that no crisis could seen in Ukraine. But in the end of October crisis “was declared” by government. (more…)