Chimp Loses Control of Van as Banks Lose Control of Foreclosure Crisis
(image from and link to last week's This American Life episode, No Map)
What do these two stories -- the first hilarious; the second infuriating -- have to do with negotiation?
First, listen to the introduction and first story in last week's brilliant episode of This American Life, No Map (podcast here).
The full chimp story (chimpanzee in red sweat-shirt, jeans and shoes causes the police to "un-arrest" his owner) is an hilarious example of a lose-lose negotiation impasse. Lesson: as the 12-step people caution: "you can't save your face and your ass at the same time."
The other, more sober tale, reveals the competing interests keeping American banks from pursuing the win-win solution that would permit "upside down" homeowners to remain in their houses and continue paying at least part of their debt. Why? Among other reasons, renegotiating loans secured by deeds of trust would require banks to carry a toxic assets on their balance sheets today rather than next year.
Other impediments include the more practical road-blocks that impede efficient management of all organizations -- a lack of preparedness -- in this case, an inability to get mortgage renegotiation service centers up and running fast enough to keep up with the crisis. We're hoping that the President's economic advisors already know this, or are still finding the time to download This American Life to their iPods or Blackberries.
Well worth a listen!
