The Market Ticker
Commentary on The Capital Markets- Category [States]

Our daily exhibit on why these thugs need to all be indicted, prosecuted and imprisoned -- each and every one of the union leaders and their members.

Among the many ideas the Chicago Teachers Union have come up with over the years to save big money or generate gobs of new revenue for our cash-strapped city, a favorite involves what they like to call “toxic” interest-rate swaps deals.

These are the same unions that advocated for these deals (and got them) years ago as a means to cut back their pension fund contributions.

In other words they used these swaps to lower their interest payments at the time, thus giving them more money to spend on other things.  Then the rate environment went against them and suddenly the deal isn't so good now and into the future.

So having gotten the benefit (exactly as they contracted for), knowing the risk (exactly as they contracted for) and having negotiated the deal knowing all these facts and having benefited from same they now want to turn around and sue because the benefit came with the exact risk that was disclosed exactly as it was expected that it might.

This sort of threat is outrageous.  It would be one thing if CPS could reasonably claim they were misled, or unsophisticated.  In many other cases (e.g. Jefferson County and similar) they were misled and in some cases there was even outright bribery involved.

But that's not true here.

In this case the union and city both knew damn well what they were doing, they got the benefits promised from the arrangements and now, having done so, they want to make someone else eat the cost of those benefits.

Uh, no.

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