An Interesting Counter Argument - Why Paulson is Wrong

http://faculty.chicagogsb.edu/luigi.zingales/Why_Paulson_is_wrong.pdf

Here is the first paragraph as a teaser

Why Paulson is Wrong

Luigi Zingales

Robert C. Mc Cormack Professor of Entrepreneurship and Finance

University of Chicago -GSB

When a profitable company is hit by a very large liability, as was the case in 1985 when

Texaco lost a $12 billion court case against Pennzoil, the solution is not to have the

government buy its assets at inflated prices: the solution is Chapter 11. In Chapter 11,

companies with a solid underlying business generally swap debt for equity: the old equity

holders are wiped out and the old debt claims are transformed into equity claims in the

new entity which continues operating with a new capital structure. Alternatively, the

debtholders can agree to cut down the face value of debt, in exchange for some warrants.

Even before Chapter 11, these procedures were the solutions adopted to deal with the

large railroad bankruptcies at the turn of the twentieth century. So why is this wellestablished

approach not used to solve the financial sectors current problems?

The rest is here

Comments

[Academic Writing Services]

Why are you beautiful? It sounds like the asker doubts that beauty is really there. The real dilemma is beauty is in the eye of the beholder. We can project an image of what we think as beauty, and for a man that is a real mindbender, but I know it when I see it. It is more than physical exaggeration of various body parts. There is grace, candor, and giving qualities to beauty. It’s like the tree in the forest bit. Is there a sound, if no one is there to hear it? I never give any thought to my own “beauty”, but it is a part of my life. I am a beauty judge. Everyone I see gets the eye. There is a computer value being tallied up, especially with seeing a woman. It’s God’s gift to men – and I thank Him for that. It may be the basic reason mankind ever pursued mathematics in the first place. When you see it, you want to melt.

[Corn Flour Mill Manufacturer]

Why are you beautiful? It sounds like the asker doubts that beauty is really there. The real dilemma is beauty is in the eye of the beholder. We can project an image of what we think as beauty, and for a man that is a real mindbender, but I know it when I see it. It is more than physical exaggeration of various body parts. There is grace, candor, and giving qualities to beauty. It’s like the tree in the forest bit. Is there a sound, if no one is there to hear it? I never give any thought to my own “beauty”, but it is a part of my life. I am a beauty judge. Everyone I see gets the eye. There is a computer value being tallied up, especially with seeing a woman. It’s God’s gift to men – and I thank Him for that. It may be the basic reason mankind ever pursued mathematics in the first place. When you see it, you want to melt.