china y el cambio climático 12 Workers and oppressed peoples of the world unite! Dec. 31, 2009 vol. 51 No. 52 50¢ Millions more to lose homes Gov’t continues to bail out Moratorium on foreclosures bankers, not homeowners needed now more than ever By Jerry Goldberg Fannie Mae and Freddie Mac, which the Treasury Department certifies that own or guarantee about half of the coun- HAMP has been implemented. Clearly, STUDENTS FIGHT BACK Testimony at a hearing on Dec. 8 by try’s mortgages, were taken over by the the statistics cited above and testified to the U.S. House Committee on Financial government in July 2008. The Treasury at the congressional hearing demonstrate ◆ March 4 nat’l day of action Services documented how the foreclosure Department committed $400 billion in that HAMP has not been fully implement- ◆ NYC youth protest transit cuts crisis is getting worse. taxpayer money to fund the takeover ini- ed. Yet Congress and President Barack 2 Laurie Goodman, senior managing tially. Fannie Mae and Freddie Mac are Obama have not enforced this law and director at Amherst Securities, a lead- burning so much cash bailing out the implemented a moratorium. ing broker/dealer specializing in trading lenders — $15 billion by Fannie Mae in In addition, the Fannie Mae and Fred- CAPITALISM & CLIMATE mortgage-backed securities, testified that November alone — that the Treasury is die Mac bailout bill, the Home Economic 9 in the third quarter of 2009, 14.1 percent considering an infusion of another $400 Recovery Act passed in July 2008, pro- ◆ ‘Green’ profits? of borrowers — or 7.9 million homeown- billion in taxpayer funds into these enti- vides for loan modifications and workout ◆ More on China’s response 11 ers — did not make their mortgage pay- ties. (New York Times, Dec. 17) Coupled agreements by servicers when the net ments. She estimated that 7 million of with funds from the AIG and GMAC bail- value would be greater than the value of these 7.9 million homeowners will lose outs, which are being utilized to pay off the home in foreclosure. Why isn’t the their homes. (www.house.gov) lenders on foreclosed properties, it is esti- government ordering that banks holding LATIN AMERICA Julie Gordon from the Center for Re- Fannie Mae and Freddie Mac loans re- mated the total government lifeline to the ◆ Panama 20 years later sponsible Lending testified that the ef- banks to cover their losses from foreclo- duce the principal on those loans to their fects of high unemployment and defaults sures could rise to $l trillion. real value? Instead, they are paying lend- ◆ ALBA in exotic Alt-A and option mortgages will The effect of this continued bailout to ers the inflated mortgage loan amount, ◆ Cuba 6-7 add millions of homeowners to this total. the banks is that it actually discourages and then selling the homes for less than She estimated that by the time this crisis lenders from reducing the principal on half that amount, with the taxpayers pick- abates as many as 13 million families will mortgages whose values they inflated ing up the difference. have lost their homes. In addition, tens through their predatory lending prac- The fight against foreclosures and evic- IMMIGRANT of millions of other homes are suffering a tices. This is because they know the gov- tions and against the banks and govern- decrease in property values totaling hun- ernment will pay them full value when the ment that continue to bail them out will STRUGGLES dreds of billions of dollars in lost wealth, borrowers default. be a critical part of the fight for jobs and in Texas, Pa. 3 costing states and localities enormous Goodman testified to Congress that in economic justice as the struggle unfolds N.Y. 6 losses in tax revenues used to pay for gov- the second quarter of 2009, 30.5 percent in the coming months. ernment services. of mortgage loans in bank Gordon testified how the Obama admin- portfolios received a prin- istration’s Home Affordable Modification cipal reduction as part of Program has fallen far short of its promise a modification. However, Public works program NOW! to help 3 million to 4 million homeown- the corresponding number ers with loan modifications. After nine for loans guaranteed by months of operation, only approximately the government through 650,000 homeowners are now in a trial Fannie Mae, Freddie Mac, modification. However, only a fraction of Federal Housing Adminis- those in trial modifications have received a tration, etc., was zero. permanent loan modification. In addition, Incredibly, while the HAMP has no provisions for principal re- current situation cries out ductions and offers no help whatsoever for a moratorium on fore- for the unemployed who cannot pay their closures and fundamental loans due to the loss of their job. T reductions in loan princi- ld pals, the Obama adminis- fE Government bank bailout continues tration and Congress have EilEN E_ How is it that bank profits are rising Mik been silent in implement- _ while foreclosures grow exponentially? ing these measures and PHOTO: The reason is that the government is in- have not enforced already- _ creasingly guaranteeing bank losses due passed legislation which WW to foreclosures by reimbursing the lend- could do so. ers at full value for overvalued mortgag- For example, the Help- es when there are defaults. This “silent ing Families Stay in the bailout” continues every day even as the Their Homes Act, passed banks make a show of returning their on May 20, states that it is Newark, N.J. Troubled Asset Relief Program funds so the sense of Congress that hants of “Jobs, not war!” echoed off they can go back to paying $30-million there should be a morato- Cthe buildings at Broad and Market streets executive bonuses. rium on foreclosures until in downtown Newark, N.J., on Dec. 19. Activists withstood freezing cold to demand a massive the wars in Iraq and Afghanistan and by taxing the public works program with direct government rich and the corporations who created the crisis.” employment at prevailing wages. In the face of Rally flyers emphasized that the jobs program Subscribe to Workers World newspaper 16 percent unemployment in the Black commu- must include “all who live here, immigrant and na- Eight weeks trial $4 One year $25 nity (well over 20 percent when part-time and tive, prison record or no prison record.” It read: “The discouraged workers are included), the marchers monopoly capitalist system, led by U.S. imperial- Name_____________________________________________Phone________________ said a jobs program should “cut class size in half in ism, drives immigrants from their homelands; op- our schools, provide low-cost housing for all, dra- Address________________________________________________________________ presses and exploits African Americans and pits us matically expand mass transit, develop and build against each other in a downward spiral of poverty City/State/Zip__ _________________________________________________________ cheap, clean, safe energy,” and much more. and oppression.” The closing demands were: No Organizers, led by the People’s Organization for one denied work; legalization for all; united we Email__ ________________________________________________________________ Progress and the New Jersey May 1st Coalition, stand — divided we fall; we demand jobs for all! Workers World 55 W 17th St. #5C NY, NY 10011 212-627-2994 workers.org said the program should be paid for “by ending — Dee Knight Page_2_dec._31,_2009_ workers.org MARCh 4. WORKERS WORLD this week ... In the U.S. National protest Millions more to lose homes ............................... 1 Public works program NOW!................................1 March 4: Nat’l protest to defend education..................2 NYC students protest transit cuts .......................... 2 to defend education Cleveland protest: ‘Recognize us as being human’...........3 By Larry Hales est of many across the country, who then reached out to Indictments in immigrant beating death....................3 California students to make the statewide day of action a Houston actions support immigrant workers ............... 3 On March 4, students and workers from all around national day. impact of technology on health delivery Part 8 .............4 the country will take action to defend education against In mid-December the California Coordinating Commit- New pension plan attacks NY workers ...................... 4 increased privatization of K-12 schools and budget cuts, tee and activists, students, educators and other workers No housing, no peace! ..................................... 4 layoffs, furloughs and tuition increases at the college and from across the country released complementary state- On the picket line .......................................... 4 university level — especially the public institutions. ments agitating for a March 4 National Day of Action. Hidden unemployment, crisis in education funding.........5 Workers and students have shouldered the brunt of The ad hoc group’s statement reads: “As people Activists score victory over billionaire NY mayor.............5 the capitalist crisis, while bankers and some corporations throughout the country struggle under the worst eco- Hands off Victor Toro, no defamation of MIR.................6 nomic crisis since the Great Depression, public educa- have been given hundreds of billions of dollars of public Around the world monies to bail them out of a crisis that was created by the tion from pre-K to higher and adult education is threat- The last Yankee invasion of