The Countrywide Bailout and the Macroeconomic Picture
As I mentioned a few days ago, Bank of America (BofA) is buying out troubled Countrywide Financial (a home mortgage lender) for more than $4 Billion, and taxpayers are going to help them finance the buyout. This is good news for Countrywide (whose CEO is being given a ludicrous $110 million going away present), but bad news for the economy as a whole, and for taxpayers. I should mention that it has been rumored that BofA felt obliged to acquire Countrywide, because the two firms had some large derivatives contracts, and if Countrywide had folded, BofA would have to write-off …