[Campaign] {Disarmed} Australia must look at LaRouche's Homeowners and Bank Protection Act

[CEC Media Release]

Citizens Electoral Council of Australia
Media Release 27th of August 2007 
Craig Isherwood, National Secretary
PO Box 376, COBURG, VIC, 3058
Phone: 03 9354 0544 Fax: 03 9354 0166
Email: cec at cecaust.com.au
Website: http://www.cecaust.com.au 

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Australia must look at LaRouche’s Homeowners and Bank Protection Act

The Lyndon LaRouche Political Action Committee (LPAC) is mobilising to get 
the United States Congress, when they return from their current recess on 
Sept. 4th, 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. 

Despite the extremely dubious claims of Peter Costello that Australia does 
not have a problem with sub-prime mortgages and that "low documentation" 
mortgages form only around 1% of Australia’s trillion dollar mortgage 
sector, Australia also desperately needs this legislation. Australia’s debt 
per capita is higher than that of the U.S. with our household debt to 
income ratio being 170% [ABS]. 

Increases in first home owners grants, stamp duty tax concessions for first 
home-owners, together with an increase in aggressive lending policies, have 
all contributed to many Australians taking out a four or five hundred 
thousand dollar mortgage that they could never really afford. Increased 
competition from non-bank lenders with zero deposit home loans, shared 
equity mortgages, and mortgages that require only limited documentation 
have especially inflamed the crisis. 

Last year over 50% of new mortgages lent in Britain were sub-prime—the 
question is, is it comparable here? There are officially 200 foreclosures 
per week in Australia, but it is acknowledged that the true figures are 
hidden, so as not to trigger a market collapse like in America; Australia’s 
largest private debt collector, Prushka, claims the true figure for 
foreclosures is four times as high. Last week’s proposal by John Symond of 
Aussie Home Loans for the government to subsidise interest rate payments 
appears to be a desperate measure to bail out the property sector. 

LaRouche’s proposed legislation would freeze home mortgages, and 
foreclosures of home mortgages, until they are restructured to reflect real 
values and reorganised at an appropriate, low interest rate. An affordable 
monthly payment will become the basis of a new mortgage, reflecting the 
deflation of the housing bubble. It would also include a full 
reorganisation of the banks whose bankruptcy is driving this bubble, 
including a write-off of speculative debt obligations such as mortgage-
backed securities. For a fuller summary of the legislation, visit 
http://larouchepac.com/news/2007/08/22/larouche-proposes-homeowners-and-bank-protection-act-foreclo.html


For more information see http://www.cecaust.com.au, or visit 
http://www.cecaust.com.au/freecopync.html to have a copy of LaRouche's 
latest webcast on DVD and our latest New Citizen, including our far-
reaching exposé of the Murray-Darling privatisation now underway, posted to 
you!


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