AIG

$700 Billion Bailout?

This weekend has been chock full of news reports discussing the government’s new plan to provide $700 billion to buy the bad debt of banks.

I’m not sure about you, but I am having a hard time understanding how United States taxpayers will be available to pay for this bailout. I mean, what type of revenue is generated by taxpayers?

Add that to the expenses of the war in Iraq, and its obvious how broke the government is. At least the $85 billion bridge loan to AIG is backed by 80% of the company, as well as has an approximately 11% interest rate. Beyond that, I’m annoyed that AIG can get that type of rate from Uncle Sam, but I cannot.

It must be going to get worse. Maybe the Fed decided not to lower rates at their recent meeting so that they can lower them later when everyone is hurting even more.