Saturday, March 21, 2009

Same Old Bullshit


"Last month, the same government that says it "cannot just abrogate" executives' bonus contracts used its leverage to cancel unions' wage contracts. As the Wall Street Journal reported, federal loans to G.M. and Chrysler were made contingent on those manufacturers shredding their existing labor pacts and "extract[ing] financial concessions from workers." In other words, our government asks us to believe that it possesses total authority to adjust contracts at car companies it lends to, and yet has zero power to modify contracts at financial firms it owns. This, even though the latter set of covenants might be easily abolished."

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