What is "the Swedish Model"? That's temporary nationalization of failed banks. See, you seize control of them, clean up the balance sheets, and auction them off. In other words, it's socialism. It's also really the only remaining option, as the current "throw money at them and watch them hoard it because they don't want to reveal that they're insolvent" model just created some zombie banks, like in Japan, and we'd much rather become Sweden than Japan. (Though the food is better in Japan, of course.)
It's a terrifying prospect, this "Swedish model," or at least Mr. Drudge certainly hopes it sounds scary, to claim our great empire will become a lowly Scandinavian constitutional monarchy, ranked number one on The Economist's Democracy Index. Well, either he's hoping to scare us with the prospect of boring Nordic democratic socialism or he's just using the term "Swedish model" to further the old Republican talking point that all the bailout money is going to porn.
All hail King Gustav! God natt, American Dream!