May 7, 2008 (LPAC)--Many observers are claiming surprise over Federal Reserve chairman Ben Bernanke's Monday night call for Rep. Barney `Bailout' Frank's "American Housing Rescue Act." But already in February, the LaRouche Youth Movement in Washington, D.C. exposed the "Ding-a-Ling Brothers and Barney Bailout Circus," that teams up the desperate Fed chairman, with the corrupt sidekick of MsLeadership Nancy Pelosi, in pushing to set up Federal bailouts in the hundreds of billions of dollars for collapsing debt-bubble securities. In fact, Wall Street's CNBC-TV has claimed the Frank mortgage bailout bill, reporting in March that Wall Street investment banks drafted the bill with their willing agent Barney Frank.

Frank's bill is intended not to rescue housing, but to rescue the Countrywides, Bear Stearns's, and hedge funds from the collapse of their pyramid of debt securities. In particular, it is an intended roadblock against the Homeowners and Bank Protection Act (HBPA), proposed by Lyndon LaRouche and called for by city councils and state legislatures around the county. `Barney Bailout's' bill was analyzed in "Congress Converges on Bailouts To Block HBPA" in LaRouche's {EIR}, Issue 12, March 21; and in early April, the Congressional Budget Office echoed {EIR}'s charge that the bill is a bailout.

Even though the White House claims Bush may veto the $300 billion commitment of the Federal Housing Administration (FHA) to buy mortgages, Bernanke pushed it in a Columbia University speech May 5. Frank is gloating that, "It is too bad President Bush ignored the advice of Chairman Bernanke and decided on right-wing ideology over needed compassion and good economics." Bernanke, who has continually increased the Federal Reserve's large bailout loans to banks, wants Federal agencies like the FHA, with Federal tax dollars, to be brought directly into the bailout circus.

In today's voting, Republican LaTourette and Democrat Brad Miller are moving an amendment, to allow states to freeze mortgages and ban foreclosures in this crisis--an amendment which shows the impact of the nationwide mobilization for LaRouche's HBPA. But the amendment is wasted on a hedge fund-drafted bailout bill which should be defeated. Enacting the HBPA would stop the bank bailouts and the foreclosures.