Riddle Me This, AIG

We are a nation of laws, and we honor contracts.

Yep, sure.  Most of the times.  And that appears to be the sole argument over why something hasn’t been done to prohibit or have returned the obscene sum of moneys given out to leaders of a miserably failing company.

That argument just doesn’t hold weight with me.

What about those private contracts for airline employees?  In bailing out that industry the government had no problem setting up a pension board that stripped money from retirees.  If that’s not re-writing a contract, what is?  Oh wait – that’s because the airline said that needed to do that to stay afloat.  Right. . . .

Well, what about when a individual files for bankruptcy protection?  Re-negotiation of contracts occurs, and sometimes, depending on timing and circumstances, contracts are declared voidable.  Isn’t that, in essence, a re-writing of the contract?

Why is it that the only contracts that can’t be re-written, or someone found voidable, are those in this failing financial industry.

I’m not an economist by any means, but it seems like all businesses and individuals in bail out or bankruptcy situations should have to face the same music.  And that means contracts are going to be scrutinized, and possible voided.

Why are we accepting anything less?

Photo:  SXC

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