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Granting Credit On The Fly. Is Bill Me Later Part Of the Problem Or Part Of The Solution?

On the same day the public markets are tanking because of the spreading credit crisis, we see one of the biggest M&A exits of the year with eBay acquiring Bill Me Later for $945 million ($820 million in cash, plus an extra $125 million in options). The only other tech exits of this size in 2008 were Sun buying MYSQL for $1 billion (which involved less cash and more options), AOL buying Bebo for $850 million.  This is for a company that lets consumers defer payment when they buy things online.  Remember, loose credit is part of the reason we are in the current economic mess.
So is Bill Me Later part of the problem or part of the solution? I put that question to Michael Kwatinetz, the former Wall Street tech analyst who is now a partner at Azure Capital, the earliest and biggest shareholder in Bill Me Later.  [...]

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