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'''François Delarozière''' (1963-) is the Artistic Director of [[La Machine (production company)|La Machine]], a [[France|French]] company which is a collaboration between artists, designers, fabricators and technicians and which specialises in producing giant performing machines, often creatures. He has collaborated with [[French]] and international companies in productions ranging from traditional theatre to experimental street art.
'''Bailout''' in economics and finance is a term used to describe a situation where a [[bankrupt]] or nearly bankrupt entity, such as a corporation or a bank, is given a fresh injection of [[Liquidity| liquidity]], in order to meet its short-term obligations. Often bailouts are by governments, or by consortia of investors who demand control over the entity as the price for injecting funds.


==Life and work==
Often a bailout is in response to a short-term cash flow crunch, where an entity with illiquid, but sufficient, assets is given funds to "tide it over" until short term problems are resolved.
Delarozière was born in 1963 in [[Marseille]] and studied there at the [[Ecole des Beaux Arts]]. He has worked in theatrical-based productions for over 20 years, first designing theatre sets and interiors. In 1987 he met Jean-Luc Courcoult, the artistic director of the French street theatre company [[Royal de Luxe]] and over a period of years, from 1991–2008, [[Delarozière, Courcoult]] and their engineers designed and created a host of huge performing creatures, which toured various European cities. These included giraffes, rhinos, a giant [[Gulliver]], and the [[The Sultan's Elephant]].


In 2008 Delarozière severed his 21-year collaboration with [[Royal de Luxe]] to focus on his own company, [[La Machine]]. [[La Princesse]], the giant mechanical spider that visited Liverpool in September of that year, is the first in a series of six planned creatures that will debut around the world.<ref name=DT>{{cite web|url=http://www.telegraph.co.uk/arts/main.jhtml?xml=/arts/2008/08/30/sm_delaroziere130.xml&page=1|title= François Delarozière - Mechanical mystery|publisher=The Times|accessdate=2008-09-12}}</ref>
The bailing out of a corporation by government is controversial because bankruptcy can be seen as being caused by the failure to satisfy consumer demand; the bailing out is thus an instance of government intervention on the market overruling the will of consumers. "All this talk: the state should do this or that, ultimately means: the police should force consumers to behave otherwise than they would behave spontaneously."<ref>Mises, Socialism: An Economic and Sociological Analysis</ref> According to the [[Austrian School of Economics]] the appearance of monopolies can often be blamed on such acts of government intervention that preserve overstretched and badly managed corporations which market forces would have broken into smaller and more specialized companies.{{Fact|date=August 2008}}


All his pieces start with hand-drawn blueprints, described as "think [[Jules Verne]] via [[Leonardo da Vinci|Leonardo]] and [[Heath Robinson]]", and his trademark materials are unpainted wood and metal, with the workings exposed.<ref name=Observer>{{cite web|url=http://www.guardian.co.uk/artanddesign/2008/sep/07/art|title= How Liverpool fell for a giant creepy-crawly|publisher=The Observer|accessdate=2008-09-07}}</ref>
Government bailouts of corporations are usually reserved for cases when a corporation is considered "[[Too Big to Fail policy|too big to fail]]" — justified by the argument that failure of certain corporations would cause unacceptable short-term economic repercussions throughout the economy.<ref name='R000123'/>


He described his influences as
A financial bailout may also describe an external intervention into the economic affairs of a nation, industry, corporation or citizen, typically for the purpose of enhancing their financial circumstances for public benefit. Bailouts have occurred globally and with some frequency since the early 20th century. In general, the needs of the entity/entities bailed out are subordinate to the needs of the state. Further, a bailout presents the challenge of [[moral hazard]], by rewarding excessive risk-taking.


{{cquote|Leonardo da Vinci, Jules Verne, [[Gustave Eiffel]], [[Antonio Gaudi]], [[surrealism]], [[dadaism]] but also everyday architecture, bridges, shipyards, railway bridges or my training in fine art. My father was a cabinet-maker, but he also built houses; that's how I came to brickwork, to plumbing, welding and mechanics. But I think what inspires me most is a study of nature; before I invent, I observe life.<ref name=LM>{{cite web|url=http://www.lamachine.co.uk/index.php/la_machine/|title= La Machine|publisher=La Machine|accessdate=2008-09-12}}</ref>}}
==Themes from Bailouts==


Delarozière has been described as an "engineering genius",<ref name=L08>{{cite web|url=http://www.liverpool08.com/streets/LaMachine/index.asp|title= La Machine|publisher= Liverpool European Capital of Culture|accessdate=2008-09-09}}</ref><ref name=Arti2>{{cite web|url=http://www.artichoke.uk.com/liverpool2008.htm|title= Liverpool 2008|publisher=Artichoke|accessdate=2008-09-12}}</ref><ref name=PHF>{{cite web|url=http://www.phf.org.uk/page.asp?id=188|title= Paul Hamlyn Foundation Artichoke Trust L'araignée by La Machine £50,000|publisher=Paul Hamlyn Foundation|accessdate=2008-09-08}}</ref> and Radio France said of him
From the many bailouts over the course of the 20th century, certain principles and lessons have emerged that are consistent:<ref>http://www.rgemonitor.com/financemarkets-monitor/253015/lessons_from_bailout_history_ii Mason-Lessons from Bailouts Part 2]</ref><ref>[http://www.rgemonitor.com/financemarkets-monitor/253803/tarp_us_2008__ccpc_japan_1992 Lessons from Japan Bailout]</ref><ref>[http://www.imf.org/external/pubs/ft/wp/2008/wp08224.pdf IMF Paper]</ref><ref>[http://www.time.com/time/business/article/0,8599,1848975,00.html?xid=site-cnn-partner Time Magazine - Lessons from Japan & Asia ]</ref>
*Act quickly and decisively.
*Let insolvent institutions (i.e., those with insufficient funds to pay their short-term obligations) fail in an orderly way.
*Loans help the system cope with [[liquidity]] concerns, but bank [[solvency]] issues require recapitalization (i.e., new equity investments and debt forgiveness/elimination).<ref>[http://www.clusterstock.com/2008/10/history-of-bailouts-what-kinds-work-and-why-ours-won-t Blodgett History of Bailouts]</ref>
*If taking over an institution due to insolvency take effective control through the board or new management, cancel the common equity (i.e., existing shareholders lose their investment), but protect the debt holders and suppliers.
*Government should take an ownership (equity or stock) interest to the extent taxpayer assistance is provided, so that taxpayers can benefit later. In other words, the government becomes the owner and can later obtain funds by issuing new [[common stock]] shares to the public when the nationalized institution is later privatized.
*A special government entity is created to administer the program, such as the [[Resolution Trust Corporation]].
*Prohibit dividend payments, to ensure taxpayer dollars are used for loans and strengthening the bank, rather than payments to investors.
*Strong oversight.


{{cquote|He creates machines, machines which are both beautiful and crazy, giant animals, strange contraptions which play music, boats which sail across the land, birds from where you can have a drink in a daydream, a world which is both real and dreamlike and which invades cities for beautiful, moving and crazy celebrations.<ref>Radio France, 29/06/2005</ref>}}
==Bailout Costs==

A 2002 World Bank report indicated that bailout costs average approximately 13% of GDP.<ref>[http://www.livemint.com/2008/09/23221028/A-crises-bailout-primer.html?d=1 Cost of bailouts]</ref>

==Cases==

====[[Economy of the Republic of Ireland#2008 Financial Crisis|Irish banking rescue]]====
In 2008 Irish banks suffered substantial share price falls due to a lack of liquidity in finance available to them on the international financial markets. Currently, solvency is being revealed as the most serious concern as doubtful loans to property developers, still undeclared in bad debt provisions, come into focus.

====Swedish banking rescue====

During 1991–1992, a [[housing bubble]] in Sweden deflated, resulting in a severe [[credit crunch]] and widespread bank insolvency. The causes were similar to those of the [[subprime mortgage crisis]] of 2007–2008. In response, the government took the following actions:<ref>{{cite news | first=Carter| last=Dougherty| coauthors= | title=Stopping a Financial Crisis, the Swedish Way | date=2008-09-22 | publisher= | url =http://www.nytimes.com/2008/09/23/business/worldbusiness/23krona.html | work =[[The New York Times]] | pages = | accessdate = 2008-09-24 | language = }}</ref>

*Sweden's government assumed bad bank debts, but banks had to write down losses and issue an ownership interest ([[common stock]]) to the government. Shareholders were typically wiped out, but bondholders were protected.
*When distressed assets were later sold, the profits flowed to taxpayers, and the government was able to recoup more money later by selling its shares in the companies in public offerings.
*The government announced the state would guarantee all bank deposits and creditors of the nation’s 114 banks.
*Sweden formed a new agency to supervise institutions that needed recapitalization, and another that sold off the assets, mainly real estate, that the banks held as collateral.

This bailout initially cost about 4% of Sweden's GDP, later lowered to between 0–2% of GDP depending on various assumptions due to the value of stock later sold when the nationalized banks were privatized.

====U.S. Savings and Loan Crisis – 1989====

In response to widespread bank insolvency as a result of the [[Savings and Loan crisis]], the United States established the [[Resolution Trust Corporation]] (RTC) in 1989.

====Other Bailouts====
*1930s – [[Great Depression]]
*1984 – [[Continental Illinois]]<ref name='R000123'>{{cite news | first=James | last=Surowiecki | coauthors= | title=Too Dumb To Fail | date=2008-02-31 | publisher= | url =http://www.newyorker.com/talk/financial/2008/03/31/080331ta_talk_surowiecki | work =[[The New Yorker]] | pages = | accessdate = 2008-09-21 | language = }}</ref>
*1990 – Japan
*1991 – [[Executive Life Insurance Company]], by states assessing other insurers
*1998 – [[Long-Term Capital Management]], by banks and investment houses, not government (see LTCM page).
*2003 – [[Parmalat]]
*2008 – [[Bear Stearns]]
*2008 – [[Federal takeover of Fannie Mae and Freddie Mac|Fannie Mae and Freddie Mac]]
*2008 – [[American International Group]]
*2008 – [[Proposed bailout of U.S. financial system (2008)|Emergency Economic Stabilization Act of 2008]]<ref>[http://www.pbs.org/now/shows/438/index.html "Behind the Bailout" — ''NOW'' on PBS]</ref>
*2008 - [[2008 United Kingdom bank rescue package]]

== See also ==
{{Wiktionary}}
*[[Bankruptcy]]
*[[Bubble (economics)]]
*[[Cash flow]]
*[[Crédit Lyonnais]]
*[[Debtor-in-possession financing]]
*[[Economic crisis of 2008]]
*[[Financial crisis]]

*[[Stock market crash]]
*[[Subprime mortgage crisis]]
*[[Emergency Economic Stabilization Act of 2008]]


==References==
==References==
{{reflist}}
{{Reflist}}

== Further reading ==
*[http://www.economist.com/finance/displayStory.cfm?story_id=12286340&source=features_box1 "Financial crisis : Carping about the TARP: Congress wrangles over how best to avoid financial Armageddon"], ''[[The Economist]]'', September 23rd 2008
*[http://www.pbs.org/now/shows/438/index.html "Behind the Bailout" — ''NOW'' on PBS] 09/26/2008

== Research papers and historical studies ==

*[http://www.imf.org/external/pubs/ft/wp/2008/wp08224.pdf IMF Study Laevan and Valencia September 2008]

{{econ-problem-stub}}


==External links==
⚫
[[Category:Financial actions]]
*[http://www.lamachine.co.uk/index.php/la_machine/ La Machine page about the company and Delarozière]
*[http://www.telegraph.co.uk/arts/main.jhtml?xml=/arts/2008/08/30/sm_delaroziere130.xml&page=1 Interview in the Daily Telegraph with Delarozière (3 pages)]
*[http://www.amorosart.com/artwork-delaroziere-spider_mecanique_savante_liverpool_la_machine-2476-en.html Delarozière's design for La Princesse]
*[http://www.amorosart.com/prints-delaroziere-1380-1-en.html Delarozière's designs for various productions]


⚫
[[Category:French designers]]
[[de:Bail-out (Wirtschaft)]]
[[Category:French engineers]]
[[es:Rescate]]
[[pl:Subwencja]]

Revision as of 18:07, 10 October 2008

François Delarozière (1963-) is the Artistic Director of La Machine, a French company which is a collaboration between artists, designers, fabricators and technicians and which specialises in producing giant performing machines, often creatures. He has collaborated with French and international companies in productions ranging from traditional theatre to experimental street art.

Life and work

Delarozière was born in 1963 in Marseille and studied there at the Ecole des Beaux Arts. He has worked in theatrical-based productions for over 20 years, first designing theatre sets and interiors. In 1987 he met Jean-Luc Courcoult, the artistic director of the French street theatre company Royal de Luxe and over a period of years, from 1991–2008, Delarozière, Courcoult and their engineers designed and created a host of huge performing creatures, which toured various European cities. These included giraffes, rhinos, a giant Gulliver, and the The Sultan's Elephant.

In 2008 Delarozière severed his 21-year collaboration with Royal de Luxe to focus on his own company, La Machine. La Princesse, the giant mechanical spider that visited Liverpool in September of that year, is the first in a series of six planned creatures that will debut around the world.[1]

All his pieces start with hand-drawn blueprints, described as "think Jules Verne via Leonardo and Heath Robinson", and his trademark materials are unpainted wood and metal, with the workings exposed.[2]

He described his influences as

Leonardo da Vinci, Jules Verne, Gustave Eiffel, Antonio Gaudi, surrealism, dadaism but also everyday architecture, bridges, shipyards, railway bridges or my training in fine art. My father was a cabinet-maker, but he also built houses; that's how I came to brickwork, to plumbing, welding and mechanics. But I think what inspires me most is a study of nature; before I invent, I observe life.[3]

Delarozière has been described as an "engineering genius",[4][5][6] and Radio France said of him

He creates machines, machines which are both beautiful and crazy, giant animals, strange contraptions which play music, boats which sail across the land, birds from where you can have a drink in a daydream, a world which is both real and dreamlike and which invades cities for beautiful, moving and crazy celebrations.[7]

References

  1. ^ "François Delarozière - Mechanical mystery". The Times. Retrieved 2008-09-12.
  2. ^ "How Liverpool fell for a giant creepy-crawly". The Observer. Retrieved 2008-09-07.
  3. ^ "La Machine". La Machine. Retrieved 2008-09-12.
  4. ^ "La Machine". Liverpool European Capital of Culture. Retrieved 2008-09-09.
  5. ^ "Liverpool 2008". Artichoke. Retrieved 2008-09-12.
  6. ^ "Paul Hamlyn Foundation Artichoke Trust L'araignée by La Machine £50,000". Paul Hamlyn Foundation. Retrieved 2008-09-08.
  7. ^ Radio France, 29/06/2005

External links

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