Reply #9: You suffer from monetary MBA delusional disorder, that money ONLY goes

[whistle]

...to speculators, not people about to lose their homes. Where is the foreclose ur protection? Not from what the Fed did today. Local banks won't get that money, hedge fund groups will. You are acting like savings and loan institutions still exist to help neighborhoods.

You are watching "It's a Wonderful Life" and living in the fantasy. That died with the failures that Greenspan engineered in 1989. That is history. The democrats must act and act now or it is game over. Congress must introduce, pass and implement the Homeowners and Bank Protection Act of 2007,

This act includes the following provisions:

1. Congress must establish a Federal agency to place the Federal and state chartered banks under protection, freezing all existing home mortgages for a period of however many months or years are required to adjust the values to fair prices, and restructure existing mortgages at appropriate interest rates. Further, this action would also write off all of the speculative debt obligations of mortgage-backed securities, derivatives, and other forms of Ponzi Schemes that have brought the banking system to the point of bankruptcy.

2. During the transitional period, all foreclosures shall be frozen, allowing American 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 systems. These affordable monthly payments will be factored into new mortgages, reflecting the deflating of the housing bubble, and the establishment of appropriate property valuations, and reduced fixed mortgage interest rates. This shakeout will 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 they can resume their traditional functions, serving local communities, and facilitating credit for investment in productive industries, agriculture, infrastructure, etc.

3. State governors shall 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.

The Congress of the United States must act to pass legislation embodying these three principles immediately, as emergency legislation, halting a "tsunami" of foreclosures, keeping millions of American families in their homes to avert social chaos, and protecting chartered lending banks of the United States and the states. It this does not happen within the next 30 days, the country is likely to go into an economic meltdown that will trigger a 1930s style depression or even an economic dark age which would take decades to recover from.