diffrence between gm breaking contracts and aig, financial companies breaking contrac

M

mahram

why is it ok and not uncapitalistic for gm and the autos to renegotiate prexisting contracts, but its uncapitalistic for any finance companies like aig to regnegotiate?
 
because it was the Fed and Treas's buddy's that were the ones that would have been hurt by AIG defaulting. For example, would they have had to close out their short positions in gold and silver?
 
How is it that the administration can't break AIG bonus contracts, but they think they can modify existing mortgage contracts with the housing bailout?
 
Quote from thriftybob:

They can change the bankruptcy law to allow cram downs, and the renegotiating part is "voluntary" for the lenders, I think.
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Thanks.

BTW, AIG was essentially bankrupt, even if they didn't file.
 
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