from Geo-Graphics

Proposals for Wall Street

September 22, 2008

Blog Post
Blog posts represent the views of CFR fellows and staff and not those of CFR, which takes no institutional positions.

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As the graph above indicates, the markets' perception of the risk of failure increased following the bankruptcy of Lehman Brothers. The Wall Street crisis has demonstrated the need for a systematic solution rather than case-by-case bailouts. Secretary Paulson has responded with a plan to create a $700 billion fund to buy up troubled assets from banks. The articles below discuss the risks involved and propose alternative solutions.

The Paulson Plan

The Dodd Plan

Wyplosz: Why Paulson Is (Maybe) Right (voxeu.org)

Zingales: Why Paulson Is Wrong (voxeu.org)

Calomiris: Matched Preferred Stock Plan

Wolf: Paulson's Plan

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