August 30, 2007 (LPAC)--As Lyndon LaRouche noted on August 21, when he put out the initial call for a Homeowners and Bank Protection act, to avert a grave social crisis, there is a tidal wave of foreclosures across the nation. While many stop-gap measures are being proposed and discussed, none of them measure up to the top-down solution laid out in LaRouche's proposal. LaRouche PAC is calling on all citizens organizations and elected officials to force Congress to enact LaRouche's proposed legislation, NOW!

Across the country, these emergency measures show the level of crisis and concern:

The California Reinvestment Coalition (CRC) executive director, Alan Fisher told the Senate Banking, Finance and Insurance Committee, August 21st, that a moratorium on home foreclosures was needed because the state was facing a tidal wave of foreclosures over the next year. Back in May, California consumer groups led by the CRC called upon home mortgage lenders to halt accelerating foreclosures in a letter signed by 125 groups in the state. A moratorium of six months would be used by officials "to figure out how to keep people in their homes."

The Michigan Emergency Committee Against War and Injustice demanded, August 27, that Governor Jennifer Granholm use her emergency powers, under Michigan law, to declare a State of Economic Emergency and impose a moratorium on foreclosures.

According to the Detroit News, August 15, in Wayne County Michigan, one out of every 29 households faces foreclosure, second only to Stockton, CA, where one out of every 27 homes is in foreclosure.

In the demand to Gov. Granholm, reference was made to the Mortgage Moratorium Act of 1933, which extended the redemption period from six months to five years, during which homeowners were allowed to stay in their homes after foreclosure.

According to The American Economic Review of June 1984, 25 state legislatures, from 1932 to 1934, passed laws temporarily preventing the foreclosure of farms by creditors. During that moratorium period debtors were obligated to pay a rental fee that was generally set by the state courts. The U.S. Congress, Central Housing Committee, in 1936 wrote that "emergency laws have arisen because depressed economic conditions prevailing throughout the country greatly increased the number of mortgagers who were unable to fulfill their contracts."