Anybody want a Homeowner and Bank Protection Act?

A number of larger and medium sized cities in the United States have just passed a memorandum to the US Congress supporting the Homeowners and Bank Protection Act. These cities include Pittsburgh, PA, Newark NJ, and soon others. Why are they supporting this legislation? Because the financial system is falling apart.

The Homeowners and Bank Protection Act, "HBPA" is model legislation from Lyndon LaRouche Pac on basically freezing mortgages that are in default and at the same time protecting banks from claims from things like Mortgage Backed Securities.

If we throw 5 million households out of their homes in the USA, this will cause a huge social crisis. At the same time these claims on the pyramid are un-payable in any case.

Under the HBPA, homeowners will still have to pay rental payments, in effect, typically the amount they were paying on their mortgage before it ballooned, or some other reasonable figure. So some capital would still be coming to the banks, but it would not be devoted to maintaining a huge pyramid of debt.
A financial pyramid, ie. huge ponzi scheme was created, starting in the early 1980s, of tturning debt (for example, a home mortgage) into an asset. This was called in New York and London a CDO (Collateralized Debt Obligation). Later this was done to at least 6 trillion dollars worth of mortgages, just in the United States. Most of these pyramided derivative obligations, like MBS will be written off or to much lower real values later.