From

LAROUCHEPAC:
HBPA, Economic Collapse
Will Fed Be Allowed to Buy $1 Trillion In Fraudulent Securities For Hyperinflation?
October 7, 2010 • 9:43AM

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ince the vast corruption involved in (what once was) the $6 trillion mortgage securitization bubble spilled out into the open two weeks ago, where the public and lawmakers could not help seeing the magnitude of it, the dynamic of a national home foreclosure moratorium is spreading quickly.

Two and a half years ago, a timid Congressman asked Lyndon LaRouche at a webcast, “If we were to do a national foreclosure moratorium, how long could we wait before we’d have to do the other part [of LaRouche’s HBPA legislation], putting the banks in bankruptcy reorganization?” LaRouche’s prompt answer: “About 10 minutes!” The global financial collapse and bail-out since that exchange, has changed the context and scope for LaRouche’s reply, but not its truth.

The biggest mortgage lending, securitizing, and servicing banks do not have real, legal title under U.S. and state law to a huge proportion of the millions of mortgages they securitized, and on which they’ve been forcing people out of their homes since then. Most Federal courts have spent three years covering their eyes to this fraud when it was brought before them; but now that suddenly everybody knows it, that is changing. State attorneys-general are demanding across the board foreclosure halts.

Members of Congress, now including, most improbably, Nancy Pelosi and Barney Frank(!), are calling for investigations and accompanying moratoria. Frank, of course, is the very guy who insisted that declaring a moratorium, back in 2007, was unconstitutional.

Now real estate prices and banks’ securitized “assets” will plunge further, again. The Wall Street Journal published an estimate today, that the losses banks have so far had to take — despite trillions in bail-outs — on these securities, will rapidly triple, due to the “foreclosure crisis.” And sore losers Fannie Mae and Freddie Mac are demanding billions back from each bank, for the mortgage frauds they securitized through Fannie and Freddie. In reality, the mortgage-backed securities (MBS) are heading toward worthlessness — and toward unenforceable, criminally fraudulent invalidity.

Financial analyst Christopher Whelan commented Wednesday on the banks’ situation, “The hope lies in restructuring. We have to get a political leadership which will conduct restructuring of the banking system.”

But the largest single bank bail-out, of all the bail-outs, has been the Federal Reserve’s $1.25 trillion purchase from the banks of these same MBSs, combined with the guarantees, by the FDIC and the Fed, of the more exotic derivatives based on them.

And now the Fed’s insane hyperinflation policy, signaled at its Aug. 10 meeting and at Jackson Hole, begins with buying another $1 trillion or more of bonds—largely MBS, which will be acquiring the deeper and deeper color of criminal fraud as the Fed buys them.

That can be stopped in one way — restoring Glass-Steagall, reversing the bail-outs, and reorganizing the banking system into a credit system.

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The senate is still in session Pro Forma, so the bill becomes law Oct 12.

So if Reid never really adjourned or put the senate in recess, doesn’t that foreclosure
bill become law by midnight? Since the senate voted unanimously for the bill and the
house by over 2 thirds, President Obama can’t veto it?