The breathtaking beauty of America’s green(back) economy becomes self evident in Mr. Obama’s elegant credibility default swap, wherein he synthesizes an ecological theory that CO2 emissions are more dangerous than nuclear waste to the environment with the moral principle that private profits should always be insured by public losses. Chuck
U.S. to Back Loans for Reactors (New York Times)
The loan guarantee was authorized by the 2005 Energy Policy Act. If the reactors are built and operate profitably, the borrowers will repay the banks and pay a fee to the federal government in exchange for the guarantee; if the borrowers default, the federal government will repay the banks.
Critics have argued that the chance of default is high, and the loans have been delayed by protracted negotiations over what the fee should be.
The 2005 act provided $18.5 billion in guarantees, but Mr. Obama proposed earlier this month to triple that amount.