Comments on: Muncipalities can tear up contracts http://www.creditwritedowns.com/2009/03/muncipalities-can-tear-up-contracts.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: Lunch with Lou http://www.creditwritedowns.com/2009/03/muncipalities-can-tear-up-contracts.html#comment-4613 Lunch with Lou Thu, 02 Apr 2009 13:31:32 +0000 http://www.creditwritedowns.com/?p=7673#comment-4613 This commentary about the sanctity of contracts is rather inappropriate for the times. Contracts establish the terms of trust between parties in normal times. The courts will be used to change, and legislators will modify, contracts because of the perception of dramatically abnormal times. To go forward, every one will be taking haircuts: all of us will be paying for the lack of strong oversight and paucity of regulators diligently doing their jobs. The laws of economics including supply and demand work: when the crash comes, prices decline, whether wages, retirement benefits, or asset values. If government steps in to soften/cushion the raw bottom, the cost is dispersed throughout the system to all taxpayers. Lou Polur 727-410-5 1 2 8 This commentary about the sanctity of contracts is rather inappropriate for the times. Contracts establish the terms of trust between parties in normal times. The courts will be used to change, and legislators will modify, contracts because of the perception of dramatically abnormal times. To go forward, every one will be taking haircuts: all of us will be paying for the lack of strong oversight and paucity of regulators diligently doing their jobs. The laws of economics including supply and demand work: when the crash comes, prices decline, whether wages, retirement benefits, or asset values. If government steps in to soften/cushion the raw bottom, the cost is dispersed throughout the system to all taxpayers.

Lou Polur
727-410-5 1 2 8

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