Big Players and the Rule of Law

by Roger Koppl

Greg Mankiw quotes a recent WSJ article:

“Like many others I made the mistake of buying what I believed was ‘value,'” Mr. Gwin says, adding that investors who bought at the time believed the loans were worth more than their market price. “We did not contemplate having our first liens invalidated by a sitting president,” he adds.

Mankiw is worried that Obama may be “trying to achieve a ‘fair’ outcome as he judges it, regardless of preexisting rules and agreements . . . . in which case politics may start to trump the rule of law.”