re: Getting out of debt by going into more debt?

quote:

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The AIG bridge loan has a high interest rate with huge equity kickesr. I think it's a good deal for us.

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I concur. And unfortunately we had to bail out Fannie and Freddie to avoid a systemic collapse of the international financial system. Bear Sterns also had so many complex derivatives entangled w/ the other financials that we had to bail them out as well. I can't imagine sorting through that mess w/ out a bail out.

but all these bail outs are a moral hazard!!! talk about a Catch-22 can you imagine the ripple effect not bailing AIG would have, financials around the world, particularly Europe, would have so many write downs in their books.









market fundamentalism is as idealistic as communism....