Before we kick ass of the “predatory lenders” we should at least recognize that it is our government that borrows all the money in the first place. It takes two to tango. If politicians didn’t run up the public debt so much, the “predatory lenders” wouldn’t even be much of an issue. Just saying. “We have met the enemy and he is us.”
Any finance company that puts together a bond deal that exceeds government income for the year at an 8+ percent interest rate (plus charges 3 percent of the funds raised for administration, and another 2 percent as deal closer) is a predatory lender.
It will never get paid off, much less paid off by 2020 when the bonds mature. To close budget gaps, the government went with this deal which gave 112% of the yearly tax collections to simply finance the GAP for the following 12 month, money that ran out in just 8 months.
No sane person would give them a loan, not with those kinds of numbers. Even Greece doesn’t monkey THIS badly.
Default is really the only answer.