CHICAGO (WBBM/CBS) - After weeks of build-up, and the unveiling Thursday of a mortgage interest rate freeze by President Bush that he called "a drop in the bucket," the Rev. Jesse Jackson and representatives from a host of other civil rights, housing and community groups in Chicago and six other cities will march Monday demanding responses by corporate America and the government to the escalating number of home foreclosures.
"We face the most pressing economic crisis, perhaps, since 1929," said Rev. Jackson, who said that more than 2.2 million American homeowners are behind on their payments and facing foreclosure if their adjustable rate mortgages reset to a higher interest rate in coming months.
Protesters intend to parade down LaSalle Street here in Chicago. In New York, a demonstration is scheduled on Wall Street. Other rallies will take place in Atlanta, Los Angeles, Detroit, Washington and New Orleans.
The foreclosure threat is beginning to gain traction as a presidential campaign issue. U.S. Sen. Hillary Rodham Clinton (D-N.Y.) has called for a 90-day moratorium on foreclosures.
After criticism from congressional leaders who accused the Federal reserve Bank of dragging its feet on rules that would protect those saddled with subprime adjustable rate loans, new consumer protection rules were announced Thursday. But Rev. Jackson said quickly that the government proposal won't help those who need help the most.
"The bail out only applies to 15 percent of those in foreclosure," he said. "The other 85 percent will continue to be left out in the cold."
Jackson said if the federal government could bail out the savings and loan industry, it can come to the assistance of homeowners facing default.
"Unless we stop this economic tsunami, we will pay a huge price," he said. "This will slow down the tsunami but it won't stop it."
Published reports have indicated that home foreclosures almost doubled in October from year-ago levels.
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