- (LPAC) -- The Lyndon LaRouche Political Action Committee
is mobilizing to get Congress, on return from recess after Labor Day, to
enact the Homeowners and Bank Protection Act of 2007. This is legislation
that Lyndon LaRouche proposes as the only means, at this late date, for
stopping millions of home foreclosures and evictions this year and next,
and for launching a larger process of bankruptcy restructuring of the U.S.
and global dollar-based financial system, which is now already doomed.
Governors and state legislators all across the United States will enthusiastically
join in this effort, which some leading bankers and Democratic Party figures,
briefed on LaRouche's proposal, have already declared is "doable"
and the "only salvation" for the American people.
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- Here are the essential features of the Homeowners and
Bank Protection Act of 2007:
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- 1. Congress must establish a Federal agency to place
the Federal and state chartered banks under protection, freezing all existing
home mortgages for a period of how ever many months or years are required
to adjust the values to fair prices, restructure existing mortgages at
appropriate interest rates, and write off all of the cancerous speculative
debt obligations of mortgage-backed securities, derivatives and other forms
of Ponzi Schemes that have brought the banking system to the point of bankruptcy.
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- 2. During this transitional period, all foreclosures
shall be frozen, allowing American families to retain their homes. Monthly
payments, the effective equivalent of rental payments, shall be made to
designated banks, which can then use the funds as collateral for normal
lending practices, thus recapitalizing the banking system. Ultimately,
these affordable monthly payments will be factored into new mortgages,
reflecting the deflating of the housing bubble, and the establishment of
appropriate property valuations, and reduced fixed mortgage interest rates.
It is to be expected that this process of shakeout of the housing market
will take several years to achieve. In this interim period, no homeowner
shall be evicted from his or her property, and the Federal and state chartered
banks shall be protected, so they can resume the traditional functions,
serving local communities, and facilitating credit for investment in productive
industries, agriculture, infrastructure, etc.
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- 3. State governors shall assume the administrative responsibilities
for implementing the program, including the "rental" assessments
to designated banks, with the Federal government providing the necessary
credits and guarantees to assure the successful transition.
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- By September-October, unless this legislation is enacted
as a first order of business of the 110th Congress in September, many millions
of Americans will be evicted from their homes, setting off a process of
social chaos that must be avoided. The freezing of foreclosures is the
vital first step in a thorough reorganization.
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- Under this plan, the Federal Reserve System will be,
itself, put through bankruptcy reorganization, and transformed into a </files/pdfs/070807_organization_recovery.pdf>Third
National Bank of the United States. As developed in Lyndon LaRouche's just-released
</news/2007/08/21/end-our-delusion.html>draft platform for the Democratic
Party, these actions shall be complemented by the creation, by treaty agreement
among leading nation-states, of a new Bretton Woods System, based on fixed
exchange rates, and long-term treaty agreements for large-scale development
projects on a global scale.
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- LaRouche said the foreclosure tsunami is occurring, not
in a mere housing crisis or mortgage crisis, but a disintegration of the
entire global financial system. There is no bottom to this collapse--unless
a legislative fire-wall is created now, and a halt to the income drain
on the population, brought on by the hyperinflationary debt bubbles created
by Alan Greenspan and his ilk.
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