A Reader's Reaction to:
Why Paulson is Wrong by Luigi Zingales.

Summary

Paulson proposes a top-down solution to the financial crisis by government purchase of bad loans from the lenders to "clean" their balance sheets. But, Barton suggests, a bottom-up solution would be a subsidy to borrowers to ensure full payments, restoring the value of the "toxic assets," thereby cleaning up.

Recommended Citation

Barton, Allen H. (2008) "Letter: Another Take on "Why Paulson is Wrong"," The Economists' Voice: Vol. 5 : Iss. 5, Article 9.
DOI: 10.2202/1553-3832.1410
Available at: http://www.bepress.com/ev/vol5/iss5/art9

Readers' Reactions

Manfredo A. Dix, Letter: The Dangers of Forgetting Moral Hazard (October 2008)