I've had enough of Larry Summers already. (Yes, Tim Geithner, too.) Here's why:
Obama advisor Larry Summers couched his passive-aggressive defense of AIG's thieves in the saccharine argot of jurisprudence. "We are a country of law -- there are contracts (and) the government cannot just abrogate contracts," he said.It is vital for liberals like me who advocate spending for the benefit of the commonwealth that we spend our shared resources well. So far, Obama's bailouts have been only marginally better than Duhbya.
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.