3.31.2009

Default by any other name


The depth of the recession and the use of taxpayer dollars to bail out companies have made it politically acceptable for overseers to tinker with employment agreements....



“We run roughshod over some contracts and not over others,” said David A. Skeel, a law professor at the University of Pennsylvania, about economic downturns. “Right now, employment contracts seem to be the type of contract that is viewed as eminently rewritable.”

[From Employment Contracts Are Now Viewed as Rewritable - NYTimes.com]

Failing to honor financial contracts, it seems, is called default, but failing to honor employment contracts is just, you know, tough beans.



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