In an article here of which we otherwise did not agree with much, there was one paragraph that did strike us as, hey, great point and yeah, we had completely forgot about that one.
· Under the guise of preventing "systemic risk", counterparties to Wall Street firms, even those surviving on government bailouts, were made whole via TARP funds. That's in stark contrast to how the automakers' creditors were treated. Similarly, the Obama team hid behind the "sanctity of contract law" amid the uproar over AIG bonuses but felt no compunction in redoing contracts between Chrysler, GM and their creditors; in the process, the administration overturned the way secured vs. unsecured creditors have historically been treated in bankruptcies.
You all remember those AIG bonuses that couldn’t possibly be revoked because they were already written into the executives' contracts and which everyone from the President and Chris Dodd knew about? Alas, not being ones to waste a crisis, though, the most ethical Congress in history sprung into action like a pack of crazed dogs and made like night-riders anew in order to demonize and track down those ingrate fat cats who refused to part with their bonuses. Ah yes, the good ol' days.
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