Monday, December 08, 2008

This explains a lot....

....about politics today. Recently Republic Windows and Doors of Chicago declared bankruptcy due to their bank's refusal to extend credit, and now there is apparently a firestorm about what happens to the severance and vacation pay owed employees. Even President-elect Obama is feeling obliged to weigh on on the controversy.

And it says a lot about our society that there is a demonstration over this; reality is that in bankruptcy court, wages and such are among the first things to be paid, and if a company doesn't maintain funds to cover vacation and severance pay owed, that's warrant for putting the company's officers in jail. No need to demonstrate; just talk to the DA and the bankruptcy court, and things will get done.

It also says a lot that one of the displaced workers is worried about making a $1800/month mortgage payment. What kind of person told an immigrant worker (she was interviewed in Spanish) that she could afford such a home? What kind of math skills did it take for her to accept such a loan?

For those who will learn, there are a lot of lessons here.

1 comment:

pentamom said...

I saw that article this morning and had the same reaction. She said she had an $1800 mortgage and one month's worth of savings.

ARGH. Whether it's her direct fault, or the fault of bad advice, or whatever, where does the idea of carrying a mega-mortgage without being able (willing?) to create substantial savings come from? And unless she was VP at the door factory, what is a door factory worker doing carrying a mortgage like that?

The other dumb thing is that the protest is based on the claim that since Bank of America got a bailout, and BOA hold's Republic's debt, it's not fair that the workers aren't getting their severance. BoA, evil capitalists that they are, issued a heartless statement pointing out that carrying the mortgage on the physical plant does not make you responsible for wages and severance. The pure gall not to pay out for things they're not liable for!