Monday, January 25, 2010
We are pointing out the obvious, but it's pretty funny to see Megan McArdle report on the Stuyvesant Town's default without mentioning its owners' moral duty to keep making their payments. McArdle's example for her moral lecture was a woman with a comparatively high income who could not afford to keep all her property, so she walked away from her residence, just like the Tishman Partnership walked away from Stuyvesant Town. Tishman Speyer has property all over the US and the world. In fact, they have multiple properties in DC. Should they be allowed to keep all those properties or sell them to afford payments on Stuyvesant Town? The answer is simple. Corporations do not have to honor contracts. Individuals do.