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Luigi Zingales says Paulson's plan won't work. H

Posted on October 11, 2008

Luigi Zingales says Paulson's plan won't work. Here is his alternative plan:Plan B, by Luigi Zingales Vox EU: After pointing a gun to the head of Congress, threatening a financial meltdown in case his plan was not approved, Treasury Secretary Hank Paulson has finally arrived at the only logical conclusion: his plan will not work.Desperate for a Plan B, Paulson is slowly warming to the suggestion of many economists: inject some equity into the banking system. Unfortunately, it is too little and too late. The confidence crisis currently affecting the financial system is so severe that only a m...

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congress , economy , regulation