Academic

Bankruptcy vs. Bailouts--Skeel

By David Skeel and Bill Stuntz

Readers of this blog are no doubt tired of hearing me argue that bankruptcy would often be a better solution to the financial distress of large financial firms like AIG or Bear Stearns than the bailouts the government has used throughout the current crisis.  But for those who haven't yet had enough, or are interested in a more scholarly treatment, here is a link to a paper by Ken Ayotte and me about the bankruptcy vs. bailout choice.

Full post as published by Less than the Least on March 24, 2009 (boomark / email).