From the Chicago Sun-Times:
This week, (Chicago Mayor Richard) Daley took an $86 million gamble with taxpayers' money that a moribund housing market will come roaring back -- by closing on the purchase of Michael Reese Hospital to pave the way for construction of a $1.1 billion Olympic Village.
That's a drop in the bucket compared with the risk the AFL-CIO is about to take with its pension funds.
The AFL-CIO investment trusts and the labor-owned Union Labor Life Insurance Co. have signed a "letter of commitment" to pump $500 million into building the Olympic Village, a project alternately viewed as the riskiest element of Chicago's Olympic bid and its enduring "physical legacy."
Olympic Village projects in London and Vancouver have run into trouble because of the worldwide credit crunch, forcing both cities to ride to the rescue.
The Sun-Times reports the move could protect the City of Chicago from a similar problem, but what if the project collapses?
Besides, the AFL-CIO has other problems.
Related posts:
Financially ailing AFL-CIO funding push for Obama's health care plan
"Creative accounting" creates problems for AFL-CIO
AFL-CIO meeting at luxury hotel in Miami Beach
Nonsense from a South Dakota AFL-CIO official about card check
Report from the bloggers' conference call on EFCA and under-funded pensions
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