All Things Bail Bonds

Bonds are used to tie up your lover, notes are what you take to remember the experience.

Bonds & Notes are both debt instruments and could sometimes be used interchangeably. Sometimes Bonds vs. Notes determine the length til maturity (i.e. 30 year bond vs a 1 year Note).

Also the gov’t bailed out Frannie because having a stable and liquid mortgage market and loans available for the average citizen to buy and sell a home is integral to the survival of the USA.
AIG if they went into bankruptcy would’ve destroyed the markets even more and sent the world into deeper crisis.. it is(was) the world’s largest insurer and affected many people and businesses alike. In return AIG had to hand over 85% or so controlling interest to the gov’t so it was not a good move for AIG shareholders for now.

As for Lehman it was a moderately small (its all time maximum market cap. was below AIG, FRE and FNM’s) and it’s demise was not deemed critical enough to the stability of world markets to prop it up.

To the guy above me… THATS FUNNY!!!

I wish I could tell you the difference between the two, not sure to be honest, but the reason why Fan/Fred got bailed out was because they were started and quasi ran by the government to begin with. The reason why Lehman and Bear Sterns did not bailed out was because the government should not have nor should they have bailed out AIG. BUT, the aftermath of Bear Sterns and Lehman to have the largest out of the three go under at this time would have made a collapse on virtually every other banking system in America.

Pretty much Lehman was devastating but AIG would have been catastrophic.

Sux either way you look at it, sorry…

Bonds and Notes are similar in that they are both securities with stated interest rates and its paid semiannually until maturity. The difference between the two is that the bonds are longterm investments with maturity terms of 10years or more, while Notes have maturity terms of 2years, 3years, 5years and 10years. See source below for details: