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LaRouche Proposes Homeowners,
Bank Protection Act

(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.

Here are the essential features of the Homeowners and Bank Protection Act of 2007:

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.

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.

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.

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.

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.

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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Ok.... But what happens if a borrower stops making payments during the foreclosure "freeze"? Won't the financial institutions be unfairly penalized?

And I may have missed it, but the section that equates monthly payments to "rent" doesn't sit well at the moment. The borrowers will still be making the same monthly payments as they always have - but the principle and interest on their loan won't decrease at all?

If I'm missing something please feel free to knock me over the head with it....
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Larouche is a nut. He's been predicting the end of civilizatoin for years becasue of the federal reserve.

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La Rouche is a Communist/Socialist you are right to worry Mike he believes in abolition of property rights. The "rent" proposal isn't any more temporary than the Patriot act was intended to be. His logic is instead of listening to constituents whine about taxes he'll just make them 100% and everyone can be poor, except of those who are running the financial system like Bank of America which he uses for his PAC accounts. The people who follow him actually believe the corporate criminals have secret plan to seize their own assets and give all the wealth to the poor people.

I'll say this in another way LaRouche doesn't want us to own anything he wants the banks to own everything.
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Ditto from me.

Very few people have regard for him. 

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