Pennsylvania Rep. Harold James is gathering support in that state's legislature,

[whistle]

... now in session, for a state resolution to Congress calling for immediate, emergency Federal action on the "Homeowners and Bank Protection Act 2007". Three states now in legislative session have such legislative resolutions, with others expected to join in demanding a Congressional action to halt the mass foreclosure wave across the country. In addition, individual elected officials from several other states have endorsed a petition to Congress for this action. Here is the Pennsylvania resolution.

Memorial Resolution to the U.S. Congress for
Emergency Action to Protect Homeowners and Banks

Whereas, the onrushing financial crisis involving home mortgages, debt instruments of all types, and the banking system of the United States, threatens to set off an economic collapse worse than the Great Depression of the 1930's; and Whereas, millions of Americans are faced with foreclosure and loss of their homes over the coming months, and

Whereas, 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, and the nominal value of the derivatives based on mortgages alone is the size of the combined GDP of the nations of the world;

Whereas, this financial crisis threatens the integrity of both state and federally chartered banks, as typified by the run on deposits of Countrywide Financial Corporation in California on August 16, which could wipe out the life savings of too many American people, and drastically undermine the economic stability of our states and cities; and

Whereas, under similar circumstances in the 1930's, President Franklin D. Roosevelt successfully intervened to protect banks and homeowners, addressing Congress with a "declaration of national policy" on April 13, 1933, which stated "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, and that to protect homeowners from inequitable enforced liquidation in a time of general distress is a proper concern of the Government";

Therefore, Be it Resolved, that the House of Representatives of the Commonwealth of Pennsylvania calls upon the U.S. Congress to take emergency action in the form of a Homeowners and Bank Protection Act of 2007 specifically to:

1. Establish a Federal agency to place Federal and state chartered banks under protection, freezing all existing home mortgages for a period of time, adjusting mortgage values to fair prices, restructuring existing mortgages at appropriate interest rates, and writing off speculative debt obligations of mortgage-backed securities, financial derivatives and other forms of financial pyramid schemes that have brought the banking system to the point of bankruptcy;

2. Declare a moratorium on all home foreclosures for the duration of the transitional period, allowing 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 system. These affordable monthly payments will be factored into new mortgages, reflecting the orderly deflating of the housing bubble, the establishment of appropriate property valuations, and reduced fixed mortgage interest rates. While this shakeout may 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 that they can resume their traditional functions, serving local communities, and facilitating credit for investment in productive industries, agriculture, infrastructure, etc.

3. Authorize Governors of the several States to 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.

And Be It Further Resolved, that a copy of this resolution shall be forwarded to each member of the Pennsylvania Congressional delegation, and also to the President of the United States, for immediate action.

[Bitwit1234]

1. What I can't understand is what are the banks

going to do with all the foreclosures. If the people can't afford to pay for them and the banks won't finance, who is gonna buy.

[whistle]

2. This is an emergency measure type bill to keep people from

...being thrown out into the streets. It is designed to operate like FDR's first 100 days to get things stabilized and avoid total chaos. Congress would then be in a position to enact further emergency bills to end the Iraq War, bring our troops home, take back control of the Federal Reserve and establish a Bretton Woods Style money stabilization agreement among trading partners, set up ne trade agreements, begin long term 40 to 50 year infrastructure projects for permanent jobs and get people back to work, fund education, health care and so on. These are what Democrats do! And this is what will save the country and the world from an economic meltdown.

<snip>
1944 – Bretton Woods Agreement: Developing a New International Monetary System

In the first three weeks of July 1944, delegates from 44 nations gathered at the United Nations Monetary and Financial Conference in Bretton Woods, New Hampshire. The delegates met to discuss the postwar recovery of Europe as well as a number of monetary issues, such as unstable exchange rates and protectionist trade policies.

During the 1930s, many of the world’s major economies had unstable currency exchange rates. As well, many nations used restrictive trade policies. In the early 1940s, the United States and Great Britain developed proposals for the creation of new international financial institutions that would stabilize exchange rates and boost international trade. There was also a recognized need to organize a recovery of Europe in the hopes of avoiding the problems that arose after the First World War.

The delegates at Bretton Woods reached an agreement known as the Bretton Woods Agreement to establish a postwar international monetary system of convertible currencies, fixed exchange rates and free trade. To facilitate these objectives, the agreement created two international institutions: the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (the World Bank). The intention was to provide economic aid for reconstruction of postwar Europe. An initial loan of $250 million to France in 1947 was the World Bank’s first act.

The Bretton Woods Agreement was also aimed at preventing currency competition and promoting monetary co-operation among nations. Under the Bretton Woods system, the IMF member countries agreed to a system of exchange rates that could be adjusted within defined parities with the U.S. dollar or, with the agreement of the IMF, changed to correct a fundamental disequilibrium in the balance of payments. The per value system remained in use from 1946 until the early 1970s.

Advocates of the Bretton Woods system believed that stable exchange rates would avoid the “beggar thy neighbour” policies of the 1930s and benefit economies around the world by expanding international trade. However, over time, exchange rates became uncompetitive because of the infrequent changes in parities. In addition, there were often large destabilizing flows of currency, as speculators bet on the value at which the fixed exchange rate would be refixed. There were also concerns that a fixed exchange rate system did not allow countries enough freedom to pursue their own monetary and fiscal policies.

Initially, Canada maintained a per value with the United States dollar. In 1946, the Canadian dollar was revalued, but it fell under significant downward pressure the following year and was devalued in 1949. Amid much criticism over what had been happening to the dollar’s value under a fixed exchange rate system, the Canadian government decided in 1950 to allow the dollar to float. Another 12 years would pass before Canada reinstated a fixed exchange rate.

Canada’s maverick years would later become a model for other countries when the fixed exchange rate system of Bretton Woods proved unworkable in the early 1970s and was replaced by a system of floating exchange rates. Many economists and bankers still periodically call for a return to fixed exchange rates.

The International Trade Organization that had been planned in the Bretton Woods Agreement could not be realized in the form initially envisaged—the U.S. Congress would not endorse it. Instead, it was created later, in 1947, in the form of the General Agreement on Tarrifs and Trade, which was signed by the U.S. and 23 other countries including Canada. The GATT would later become known as the World Trade Organization. In recent years, the two international institutions created at Bretton Woods the World Bank and the IMF have faced a major challenge in helping debtor nations to get back on stable financial footing.

http://www.canadianeconomy.gc.ca/English/economy/1944Bretton_woods.html

[drm604]

3. K&R

This is important. A lot more important than some of the things DUers have been obsessing over recently.

[whistle]

4. Hedge Fund lobbyists are spending millions of dollars to keep U.S. Congress

...Representatives and Senators in line to keep this legislation off the table, so the people must speak out to get Congress to fulfill their constitutional oath of maintaining the General Welfare NOT the welfare of special interest Hedge Fund speculators. By keeping the Greenspan real estate bubble alive these actions by Congress will assure an economic disaster and mass looting by the speculators :wtf:

[BlooInBloo]

5. I tried getting DUers' attention to this bill like a week ago. DU didn't care. :(

[whistle]

6. Well, we just keep on keeping on....one way or another this will be an issue

...either pro-actively or retro-actively. Bernanke will keep printing billions for Hedge Fund and Wall Street speculator bailouts and prices will keep going up and at some point even the most dense and dim will see the truth :nopity: :hurts:

[BlooInBloo]

7. Fuck em. They'd rather play the hate-clinton game, let em.