Full Cost-Benefit Analysis of AIG Bailout

The Washington Post (a.k.a. Fox on 15th Street) did another one of its cheer leading pieces for the bank bailouts, telling readers that country is likely to make money on its bailout of AIG in its lead editorial. This is of course silly since the Post's calculation assumes no opportunity cost for money.

Under the Post's definition of profit, if the government lent out $10 trillion for 30 year mortgages are 1.0 percent interest, and got this money paid back, then it would have made a profit...