As Paulson's and the world's confidence in the original rescue plan has waned, Luigi Zingales, a finance professor from the University of Chicago, who early on opposed the Paulson plan, presents Plan B. Plan B is an innovative approach for dealing directly with the foreclosure crises which avoids the costs and moral hazard problems of other proposals, together with a prepackaged bankruptcy/recapitalization proposal inspired by Lucian Bebchuk.
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