[jeockammece]

Did you see the interest rate on that loan?

11%!!!!

It is not like they are being given a free ride.

The only other thing is to see how much the company actually can make. Is this a buyout, or a bailout? Buyout means that something was inherently wrong, bailout means get the water out long enough for them to make some headroom and do it themselves later.


Here's a bit of irony. What would happen if all of our bailouts were high interest? If these companies started owing the biggest in-debt nation in the modern era?

So long as those that are loaned the money DO have a solid revenue stream to pay the debt, it could be a way, outside of taxes, to help our own political revenue system.


Question though, I know that it was the changing of their bond rating to "Junk" that caused them to go from somewhere near $60 a share down to a low point of about $4 a sahre in LESS THAN A DAY, but what was the cause of the rating?

If this company was still making money, the panic from investors bailing should not be the death nell of a viable corporate entity.

We need some regulation to help control some of this. Instant action/reaction has never boded well in a financial situation, some sort of buffer? A trading circuit-breaker?

I don't know.