October 30, 2007 (LPAC)--Congressman John Conyers (D-MI) today read a key section of LaRouche's Homeowners and Bank Protection Act into the record of a hearing of a subcommittee of the Judiciary Committee. The subject of the hearing was "How We Can Protect Homeownership and Provide Relief to Consumers in Financial Distress," and witnesses were discussing Rep. Brad Miller's (D-NC) HR 3609, which would seek to protect homeowners by tweaking U.S. personal bankruptcy laws,-- obviously irrelevant at a time when many millions of foreclosures are expected.

When his turn came to question witness Mark Zandi, chief economist of Moody's, Rep. Conyers told him, "Some of my friends are asking me to do the following," and read him the following two paragraphs from Michigan House Resolution No. 190, introduced Sept. 28 by State Representative LaMar Lemmons, with 21 co-sponsors.

"Whereas, During the transitional period, all foreclosures should be frozen, allowing American families to retain their homes. Monthly payments, the equivalent of rental payments, should be made to designated banks, which can use the funds as collateral for normal lending practices, thus recapitalizing the banking system. These payments will be factored into new mortgages, reflecting the deflating of the housing bubble and the establishment of appropriate property valuations and reduced interest rates; and

"Whereas, State governments should assume the administrative responsibilities for implementing the program, including the rental assessments to designated banks. The federal government should provide the necessary credits and guarantees to assure the successful transition;..."

Witness Zandi rejected this, and the hearing was almost immediately interrupted for a floor vote.