November 21, 2007 (LPAC)--Upon being briefed on the Governator of California's surprise announcement to "freeze" adjustable interest rates for high-risk borrowers, LaRouche said, "If he wants to be a man of the people, he should join the human race."

The announcement from George Shultz's fascist Governator, came from, according to the Governator, a voluntary agreement with four leading mortgage lenders on Tuesday; GMAC Mortgage, Countrywide Financial, Litton Loan Servicing, and HomeEq Servicing. He claims it would cover 25% of homeowners threatened with foreclosure, but this agreement would not benefit any homeowner who has already missed a payment. There have already been 52,560 home foreclosures in California from January through September of this year, according to DataQuick.

While some advocates for homeowners are praising this action, Lyndon LaRouche has emphasized that any effort to stop foreclosures, which does not address the reverse-leveraged chain-reaction collapse of the banking system, which is underway, is doomed to fail. The Homeowner and Bank Protection Act of LaRouche, was drafted to put up a firewall, to protect state and federal-chartered banks from such a collapse.

One economist, contacted by LaRouchePAC, was quite skeptical of this plan, pointing out that many banks and lending agencies have already pledged the increased income expected from higher interest rates, to cover their own increased borrowing. A freeze, he said, which doesn't take this into account, could lead to a chain-reaction collapse of Mortgage-Backed Securities, which would have "a dramatic effect on the nation's investors, especially pension funds."

Schwarzenegger's proposal, which undoubtedly came from long time enemy of LaRouche and the nation state, George Shultz, appears to be a time-buying gimmick at best, but one crafted to enhance his appeal as a "man of the people."