When a contractual obligation is not an obligation....

Recently, there has been a lot of coverage of the excesses of the auto execs, including the use of private jets. These managers, who have made many millions of dollars while running the companies to the ground, are reneging on contractual obligations made to retirees.

Ford reaches deal with UAW on retiree healthcare- The pact will allow the automaker, which owes billions of dollars to a healthcare trust, to make as much as half its payments in equity rather than cash.

A bankruptcy judge on Tuesday tentatively approved Delphi Corp.'s request to stop paying for health care and life insurance benefits for its retired salaried workers, but he left the door open for some retirees to be excluded from the move. U.S. Bankruptcy Judge Robert Drain in Manhattan ruled that the auto parts supplier has a right to change the retirees' benefits under bankruptcy law and that the cuts are justified given the company's dire finances, its troubles finding financing and the overall state of the automotive industry.

While it may be too much to expect these firms to meet their obligations, the fact is that the managers, who should be held responsible, are getting away without any punishment. Wagoner and others arguing that their options are under water is really rubbing the salt on the wound. If they returned every penny that they took from GM, perhaps then there would be some escape valve for the moral obligations.