Citizens Electoral Council of Australia
Media Release 7th of February 2008
Craig Isherwood, National Secretary
PO Box 376, COBURG, VIC, 3058
Phone: 03 9354 0544 Fax: 03 9354 0166
Email: cec@cecaust.com.au
Website: http://cec.cecaust.com.au
Rate hikes trigger foreclosure tsunami: Federal Government must intervene!
Eleven consecutive interest rate increases by the Reserve Bank, and the recent independent rate rises by the private banks, have triggered a mammoth explosion in the foreclosure rate as homeowners buckle under the burden of their enormous debts.
The well-reported JP Morgan/Fujitsu analysis due to be published next month will estimate that, as rates rise, 750,000 homeowners will be suffering "mortgage stress" in the months ahead, with 35% or more of their income going to pay the mortgage. 300,000 of those in severe mortgage stress will likely be foreclosed on this year—that is 6,000 per week!
Contrary to this reality, Prime Minister Rudd claims that the economy is "enjoying its 17th year of economic growth." Rather than weakly proclaiming the "independence" of the Reserve Bank, Rudd should intervene as "old Labor" stalwarts like Jack Lang did, to defend the general welfare of Australia’s citizens.
Rudd must immediately pass the Homeowners and Bank Protection Bill, to impose a moratorium on all home and farm foreclosures until the mortgages can be renegotiated to reflect real values once the housing bubble bursts, and protect the retail banks and people’s savings from the massive financial losses to come. The Citizens Electoral Council is circulating this bill to every councillor and State and Federal Member of Parliament in the country.
To sign the petition calling on the Federal Government to enact the HBPB as law, click here. To receive a complimentary copy of our latest New Citizen and EIR magazine, which outline the causes of the global financial crash and how to deal with it, click here.
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