e popping of the bubble of collateralized assets. Either of them or both of them combined will be the biggest blow in most people's lifetime.

[Triple+Curve+Function]

Triple Curve Function:

At the point of collapse

This entire process must be looked at from the standpoint of LaRouche's Triple Curve. It is not event-driven. Suckers like event-driven developments, but this process is dynamic, not Cartesian, LaRouche emphasized.

In respect to the collateralized assets, LaRouche said this is bigger than anything considered so far. The main driver is the indirect monetization of collateralized assets, which are worthless. Therefore, what you have is a pile of shit at the bottom of the entire process, which is collateralized as fictitious assets. These fictitious assets are then used as assets of some other capital holding.

Thus, what you have is a pyramid of crap. The monetary increase is in the form of a monetized fiction of collateralized assets. If that pops, you will see an implosion beyond anything imagined so far, LaRouche said. Therefore, don't look at the process as if it were an event-driven Cartesian phenomenon. When this bubble of crap pops you will have an implosion and a chain reaction.

The only measure that will work under these circumstances is the Homeowners and Bank Protection Act of 2007. This legislation defines the categories to be protected. You have to protect the homeowners and the state- and federally-chartered banks. Put no price tag on this. Flat out freeze it.

We have to create a genuine firewall, an absolute firewall, LaRouche emphasized. There can be no compromise, otherwise the whole system will go. Don't do anything else. There should be no pricing of mortgages or bank assets. Don't try to negotiate a compromise. Don't encourage anyone else to do so.

As for the hedge funds, we condone no reorganization of hedge funds. They can't be saved, LaRouche said. Their collapse is inevitable.

Don't pour money or assets into supporting hedge funds. Anything put into saving them will be lost. No bail out! Countrywide should not have been bailed out. Get the firewall up right away. Without that nothing will work. Protect the banks and the mortgage structures--that is it. Any bailout of the hedge funds should not happen. They should be driven into foreclosure.

The choice is save the nation or save the hedge funds, and you can't save the hedge funds. The hedge funds have no destiny except death. Don't bail them out. Put them into receivership.

We need to erect a firewall. Just freeze the mortgages. There should be no price, no compromise, no decision about negotiating prices. Don't try to negotiate.

The problem with most of the Presidential candidates is that they received contributions from the hedge funds. We warned them not to do it, but they did it anyway. They now need to bite the dirt, LaRouche said.

Nations like China also have to realize that adjusting rates will accomplish nothing. It is Cartesian thinking. The collapse is occurring. The U.S. market is collapsing. Lowering rates won't help, because the collapse is not relative, it's absolute. Therefore, no adjustment of prices will help.