Letter: The Moral Hazard of Bailing Out Borrowers

Barton Allen H
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Barton Allen H: University of North Carolina at Chapel Hill

The Economists' Voice, 2008, vol. 5, issue 8, 2

Abstract: Allen Barton counters: A bailout of subprime mortgage borrowers would not create a "moral hazard" because it could be limited to those "toxic" mortgages already issued and packaged in "toxic" securities, contrary to Manfredo Dix's fears.

Date: 2008
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DOI: 10.2202/1553-3832.1503

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