|This article appears in the October 19, 2007 issue of Executive Intelligence Review.
Petition to Congress:
Implement the Homeowners and
Bank Protection Act
This petition from the Lyndon LaRouche Political Action Committee (LPAC) is being circulated across the United States by, and to, state and local elected officials, and to labor movement leaders, and other elected leaders, for presentation to the U.S. Congress. If you would like to endorse this petition, please send an e-mail to email@example.com, and include your full name and your organization (for identification purposes only.)
The onrushing financial crisis engulfing home mortgages, debt instruments of all types, and the banking system of the United States, threatens to set off an economic depression worse than the 1930s.
Millions of American citizens are threatened with foreclosure and loss of their homes over the upcoming months, according to studies released by RealtyTrac and Moody's Economy.com.
The hedge funds which spread this financial collapse among markets worldwide, by dominating speculation in all those markets, are now going bankrupt and demanding government bailout of their securities and derivatives. The nominal value of the derivatives based on mortgages alone is the size of the combined GDP of the nations of the world. The hedge funds, the mortgage-backed securities, the financial derivatives can not be bailed out.
This financial crisis is now threatening the integrity of both state and Federally chartered banks, as typified by the run on deposits of Northern Rock mortgage bank in Britain in September and Countrywide Financial in California during the month of August; and such a banking collapse would wipe out the life savings of American citizens, and drastically undermine the economic stability of our states and cities.
In a similar financial crisis in the 1930s, President Franklin D. Roosevelt intervened to protect banks and homeowners; for example in April 1933, he introduced legislation as a "declaration of national policy ... that the broad interests of the Nation require that special safeguards should be thrown around home ownership as a guarantee of social and economic stability...." One month earlier, his Bank Holiday reorganized the nation's failing banks under Federal protection.
The principles of the Homeowners and Bank Protection Act of 2007, proposed by economist Lyndon H. LaRouche, Jr., meet this crisis. It requires emergency action that only the United States Congress has the capability to enact. This act includes the following provisions:
- 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 however many months or years are required to adjust the values to fair prices, and restructure existing mortgages at appropriate interest rates. Further, this action would also write off all of the 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.
- During the transitional period, all foreclosures shall be frozen, allowing American families to retain their homes. Monthly payments, the equivalent of rental payments, shall be made to designated banks, which can use the funds as collateral for normal lending practices, thus recapitalizing the banking systems. 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. This shakeout will take several years to achieve. In the 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 their traditional functions, serving local communities, and facilitating credit for investment in productive industries, agriculture, infrastructure, etc.
- 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.
I urge the Congress of the United States to pass legislation embodying these three principles immediately, as emergency legislation, halting a "tsunami" of foreclosures, keeping millions of American families in their homes to avert social chaos, and protecting chartered lending banks of the United States and the states.
Signers of the Petition
- Congressman Mervyn Dymally*; currently State Assemblyman; Los Angeles, Calif.
- Dr. Joycelyn Elders, former Surgeon General of the United States; Little Rock, Ark.
- Congressman Andy Jacobs*; Indianapolis, Ind.
- Rosa Rosales, National President, League of Latin American Citizens; San. Antonio, Tex.
Current and Former State Elected Officials
Listed alphabetically by state, and alphabetically by name within each state:
- Sen. Eric Coleman; Hartford, Conn.
- Rep. Douglas McCrory; Hartford, Conn.
- Rep. Felipe Reinoso; Bridgeport, Conn.
- rJo Winch, Hartford City Council; Hartford, Conn.
- Erford Fowler, City Council; Newburyport, Mass.
- Councilman Jorge Gonzalez; City Council, Lawrence, Mass.
- Rep. Benjamin Swan; Springfield, Mass.
- Councilman Radhames Capellan; Prospect Park, N.J.
- Richard Forbes; Committeeman, Pohatcong Township; Pohatcong, N.J.
- Assemblyman Gordon Johnson; Englewood, N.J.
- Harry Apolito; County Legislator, 15th District, Niagara Falls, N.Y.
- Rep. Harold James; Philadelphia, Pa.
- Rep. Thaddaeus Kirkland; Chester, Pa.
- Rep. Ron Waters; Philadelphia, Pa.
- Rep. Annazette Collins; Chicago, Ill.
- Sen. Samuel Smith; E. Chicago, Ind.
- Rep. Oletha Faust-Goudeau; Wichita, Kan.
- Rep. Lee Gonzales; Flint Township, Mich.
- Rep. LaMar Lemmons II; Detroit, Mich.
- Rep. LaMar Lemmons III*; Detroit, Mich.
- Everett Seay, City Council; Pontiac, Mich.
- Rep. Esther Haywood; St. Louis, Mo.
- Rep. Rodney Hubbard; St. Louis, Mo.
- Rep. Jamilah Nasheed; St. Louis, Mo.
- Rep. Terry Riley,* City Council; Kansas City, Mo.
- Rep. Charles Quincy Troupe,* Board of Aldermen; St. Louis, Mo.
- Rep. Juanita Walton; St. Louis, Mo.
- Sen. George W. Burrows*; Adams, Neb.
- Sen. John DeCamp*; Lincoln, Neb.
- Sen. Don Eret*; Dorchester, Neb.
- Rep. Catherine Barrett*; Cincinnati, Ohio
- Kevin Conwell, City Council; Cleveland, Ohio
- Rep. Annie Keys*; Cleveland, Ohio
- Robert White, City Council; Cleveland, Ohio
- Rep. Jim Bradford; Pine Ridge, S.D.
- Sen. Theresa B. Two Bulls; Pine Ridge, S.D.
- Tribal Chairman Robert Cournoyer, Yankton Sioux Tribe; Marty, S.D.
- Rep. Clayton Halverson; Veblen, S.D.
- Sen. Frank Kloucek; Scotland, S.D.
- Rep. Gerald F. Lang; Madison, S.D.
- Rep. Larry Lucas; Mission, S.D.
- Sen. Ryan Maher; Isabel, S.D.
- Rep. Eldon Nygaard; Vermillion, S.D.
- Tribal Chairman Joseph Brings Plenty, Cheyenne River Sioux Tribe, Eagle Butte, S.D.
- Sen. Dan Sutton, Flandreau, S.D.
- Rep. Tom van Norman; Eagle Butte, S.D.
- Rep. Christine Sinicki; Milwaukee, Wisc.
- Rep. Yusuf Abdus-Salaam; Selma, Ala.
- Rep. Ronald Grantland; Hartselle, Ala.
- Rep. Thomas Jackson; Thomasville, Ala.
- Rep. Thad McClammy; Montgomery, Ala.
- Rep. Demetrius Newton; Speaker Pro-Tem; Birmingham, Ala.
- Rep. John Rogers; Birmingham, Ala.
- Rep. James Thomas; Selma, Ala.
- Rep. Priscilla Taylor; West Palm Beach, Fla.
- Rep. Billy Mitchell; Stone Mountain, Ga.
- Rep. Howard Mosby; Atlanta, Ga.
- Rep. Earnest Williams; Stone Mountain, Ga.
- Dan Johnson, City Council; Louisville, Ky.
- Sen. Joey Pendleton; Hopkinsville, Ky.
- Mayor Jack Hammons; Winnsboro, La.
- Sen. Robert Kostelka; Monroe, La.
- Mayor Reggie Skains; Downsville, La.
- Rep. Earle Banks; Jackson, Miss.
- Rep. Credell Calhoun; Jackson, Miss.
- Jackie Washington, Business owner and NAACP activist; Biloxi, Miss.
- James Mitchell, City Council; Charlotte, N.C.
- Rep. Robert Brown; Charleston, S.C.
- Rep. Joe Towns; Memphis, Tenn.
- Supervisor James E. Clem; County Board, Loudoun County, Va.
- Sen. Joe Neal,* Las Vegas, Nev.
- Sen. Carlos Cisneros; Questa, N.M.
- John Wiley Price, Dallas County Commission; Dallas, Tex.
- Scott Henning, Grievance Chairman and Trustee, United Steelworkers Local 8378; McMinnville, Ore.
- Bruce Hawley, President, Western Michigan Building Trades; Business Manager, Ironworkers Local 340; Grand Rapids, Mich.
- Gary Barnett, Chairman, UAW CAP Council Franklin County; Columbus, Ohio
- Mark Sweazy, President, UAW Local 969; Columbus, Ohio
- Kathy Jensen, Financial Secretary, UAW CAP Council Franklin County; Columbus, Ohio
- Frank Hettinger, Business Agent, Elevator Constructors Local 20; Louisville, Ky.
- Bob Gossman, Chairman, UAW Retirees Local 969, Columbus, Ohio
- John Jeffries, President, IAM Lodge 830; Louisville, Ky.
- Windell Gregory, Secretary-Treasurer, District Lodge 19 IAMAW; Paducah, Ky.
- Gordon Brown, Trustee, UAW CAP Council Franklin County; Columbus, Ohio
- Bob Breckinridge, Trustee UAW CAP Council Franklin County; Columbus, Ohio
- Lawrence Ryan, President, United Steelworkers Local 370; Ft. Smith, Ark.
- Charles Morton, Executive Director, Dayton Building and Construction Council; Dayton, Ohio
- Martin Sheets, Vice President, Local 1395 IBEW; Indianapolis, Ind.
- Rick Nye, President, UAW Local 2269; Columbus, Ohio
- Eugene Morey, President, UAW Local 849; Ypsilanti, Mich.
- Gary Perry, Chair, Franklin County Union Label Committee; Columbus, Ohio
- Michael Balls, Vice Chair, Saginaw County UAW CAP Committee; Trustee UAW Local 699; Board of Directors, Wanigas Credit Union; Saginaw, Mich.
- Van Collins, Uniserve Director, Michigan Educators Assn; Saginaw, Mich.
- David Campbell, Secretary-Treasurer, Area Local 480-481 APWU; Ferndale, Mich.
- Paul Shemanski, International Representative, IAM Michigan; Comstock Park, Mich.
- Frank Barkley, President, 12th District VA Council AFGE; Business Agent, Local 1061, AFGE; Van Nuys, Calif.
- James Berger, Business Manager, IBEW Local 309; Collinsville, Ill.
- Ismael Martinez, Recording Secretary, USWA Local 1482; Old Bridge, N.J.
- Adrian King, President, UAW Local 35; Hamtramck, Mich.
- Steve Green, President, USWA Local 1482; Old Bridge, N.J.
- Sue Daniel, Treasurer, Smith County Central Labor Council, former Vice President, Texas AFL-CIO; Frankston, Tex.
- Lawrence Oberding, Business Agent, Ironworkers Local 44; Cincinnati, Ohio
- Maurice Pulley, Executive Board, Local 1654 AFSCME; Milwaukee, Wisc.
- Bert Atkins, Chairman, Legislative Committee, IAM Local 837, St. Louis, Mo.
- Richard Downs, Vice President, Heat and Frost Insulators Local 18; Indianapolis, Ind.
- Shane Shook, President, AFSCME Local 3450; Des Moines, Iowa
- William Londrigan, State President, Kentucky AFL-CIO; Frankfort, Ky.
- Mark Thomas, Business Agent, Ironworkers Local 3; Pittsburgh, Pa.
- Douglas Kubic, Financial Secretary-Treasurer and Business Agent, ILA Local 815; Milwaukee, Wisc.
- John Jeffries, President, Local 830 IAM, Louisville, Ky.
- Jonathon Dooley, Vice President, Amalgamated Transit Union Local 1447; Louisville, Ky.
- Rhonda Rivers, Recording Secretary, ATU Local 1447; Louisville, Ky.
- Wanda Mitchell-Smith, Political Action Representative, AFSCME Council 62; Louisville, Ky.
- Paul Jacobs, Business Representative, Teamsters Local 379; Boston, Mass.
- Richard Womack, National Representative, AFL-CIO; Philadelphia, Pa.
- Kenneth Koch, President, IAM Lodge 681; Vice President Kentucky AFL-CIO; Louisville, Ky.
- Larry Johnson, President, IAM Lodge 1720; Mayfield, Ky.
- Ron Basham, Chief Steward, IAM Lodge 830; Louisville, Ky.
- Mary Garr, President, CWA Local 3310; Louisville, Ky.
- Jim Neubauer, Business Manager and Financial Secretary, IBEW Local 1377; Cleveland, Ohio
- S.L. Stephens, President, UAW Local 882; Hapeville, Ga.
- Jeff Monroe, UAW International Representative, General Dynamics Coordinator; Detroit, Mich.
- Donald Lawson, Labor lawyer and consultant; San Jose, Calif.
- Chris Holland, Apprentice Program Instructor and Former Executive Board, Ironworkers Local 416; Norwalk, Calif.
- Kenneth Pifer, Business Representative, Local 312; Painters and Glaziers; Kalamazoo, Mich.
- Joe Joseph, Former President, UAW Local 1970; Dearborn, Mich.
* Former elected official.