Not Looking Good For AIG Bailout
Anyone who knows me very well (and now, anyone reading this post) knows that I really struggle coming up with article titles. But, I think I could have come up with this subtitle (in the Wall Street Journal): The federal bailout needs a private rescue.
This paragraph summarizes the point of the article:
The Feds are charging AIG more than 10% interest on the entire $85 billion, even if the company doesn’t borrow that much. The interest rate on money actually borrowed is more than 14%. One AIG shareholder likens it to a financial counselor advising someone struggling to pay the 6% interest on his mortgage to solve the problem by running up debt on his credit card. That’s why the New York Federal Reserve recently had to bail out the bailout, lending another $37.8 billion at more attractive terms.
Maybe the Wikipedia entry for predatory lending should be updated?
NM
