Tuesday, August 23, 2011

Really

From a press release from the Chicago Teachers Union (the emphasis is mine)

More than 40,000 homes are foreclosed in Cook County each year. Combined with the illegal lay-off of teachers these foreclosures contribute to housing insecurity for thousands of CPS employees and students. As part of its ongoing negotiations with CPS, the Union requested that the Board turn up the pressure on Bank of America, JPMorgan Chase, Citigroup, Wells Fargo, and Deutsche Bank until these institutions agree to write down the mortgage principals and interest rates for all homeowners facing foreclosure within the school district to market value as a part of an affordable and sustainable loan modification program.
"The decline of safe and secure homes greatly impacts the overall well-being of the children, educators and their families in our public schools. Their interests are our interests," said Lewis. “We urge the school board to stop doing business with the “big five” banks whose policies adversely impact our schools and neighborhoods.

Really, the banks should eat all of that? In order to do business with CPS? I think mathematically alone the losses the banks would suffer do not even come close to what they make doing business with CPS. So what happens if there is a subsequent gain in home prices, I am betting the homeowner gets to keep all of that. How low should mortgage rates go, CTU?

In terms of reality, this ranks right up there with Hans Gruber asking for the freedom of the nine members of Asian Dawn in Sri Lanka , it isn't going to happen and it's irrelevant to what they are trying to do.

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