If the government won't enforce contracts, then who will?

It doesn't matter whether it's AIG executives or mortgages. And then what of property rights? With no property rights, individual rights will erode, too.

And in the short term, this type of uncertainty creation will not help markets or households.

UPDATE: Andrew Ross Sorkin agrees, and with much more meat.

UPDATE: Robert Higgs agrees, with the meaty uncertainty of Vulgar Keynesianism.