Common Sense Bailout - Dave Ramsey

I don't typically get too involved, but feel this is big enough to say something.

If you've ever heard of Dave Ramsey and what he's about and does. He makes a lot of sense (to me at least). If you agree with his common sense plan, the take a chance and send it to your local representatives and senators and see if we can make a difference.

Click below to check out the plan.
http://www.daveramsey.com/etc/fed_bailout/

Oh, here's the plan, so if you don't like it, don't go to the link.

The Common Sense Fix
Years of bad decisions and stupid mistakes have created an economic nightmare in this country,
but $700 billion in new debt is not the answer. As a tax-paying American citizen, I will not support
any congressperson who votes to implement such a policy. Instead, I submit the following threestep
Common Sense Plan.
I. INSURANCE
a. Insure the subprime bonds/mortgages with an underlying FHA-type insurance.
Government-insured and backed loans would have an instant market all over the
world, creating immediate and needed liquidity.
b. In order for a company to accept the government-backed insurance, they must do two
things:
1. Rewrite any mortgage that is more than three months delinquent to a
6% fixed-rate mortgage.
a. Roll all back payments with no late fees or legal costs into the
balance. This brings homeowners current and allows them a
chance to keep their homes.
b. Cancel all prepayment penalties to encourage refinancing or
the sale of the property to pay off the bad loan. In the event of
foreclosure or short sale, the borrower will not be held liable
for any deficit balance. FHA does this now, and that
encourages mortgage companies to go the extra mile while
working with the borrower—again limiting foreclosures and
ruined lives.
2. Cancel ALL golden parachutes of EXISTING and FUTURE CEOs and
executive team members as long as the company holds these
government-insured bonds/mortgages. This keeps underperforming
executives from being paid when they don’t do their jobs.
c. This backstop will cost less than $50 billion—a small fraction of the current proposal.
II. MARK TO MARKET
a. Remove mark to market accounting rules for two years on only subprime Tier III
bonds/mortgages. This keeps companies from being forced to artificially mark down
bonds/mortgages below the value of the underlying mortgages and real estate.
b. This move creates patience in the market and has an immediate stabilizing effect on
failing and ailing banks—and it costs the taxpayer nothing.
III. CAPITAL GAINS TAX
a. Remove the capital gains tax completely. Investors will flood the real estate and stock
market in search of tax-free profits, creating tremendous—and immediate—liquidity in
the markets. Again, this costs the taxpayer nothing.
b. This move will be seen as a lightning rod politically because many will say it is helping
the rich. The truth is the rich will benefit, but it will be their money that stimulates the
economy. This will enable all Americans to have more stable jobs and retirement
investments that go up instead of down.
This is not a time for envy, and it’s not a time for politics. It’s time for all of us, as Americans, to
stand up, speak out, and fix this mess.

CS

Posted: Wed Oct 01, 2008 1:58 pm Post subject:

Those are some interesting points Crazy and Eagle, but I have a simpler plan.

The government needs to just stay the he!! out of it and it will fix itself.

1. Everytime the federal government gets involved in something it wasn't created for, it just screws everything up.

2. Why can't we find 700 billion to dump into social security? Which brings up the question of should we even have social security but that's a different topic!

3. Most politicians are too darn crooked to be making any financial decisions for the country. Until the politicians are held accountable, we can't expect them to hold wall street accountable. It's a lose - lose situation with the average American holding the burden.

Are there not any Cynics in this world that can stand up and lead this country? Cynic would you mind if we just cloned you about 5000 times and made you fill all the offices of the federal government at once while there is still hope?
_________________

Posted: Wed Oct 01, 2008 2:53 pm Post subject:

Posted: Wed Oct 01, 2008 7:18 pm Post subject:

Dave Ramsey is correct in his approach.

The market just needs to go through this and it will rebuild itself and be better for it. This is what free market is all about. The banks will come back because a small bank which watches closely over its money will be that more attractive to people seeking to deposit their money and if that bank stays true to its colors then that bank will grow in a STABLE manner.

I and my wife have notified all of our state and local leaders how we feel about this bail-out and if they vote for it they will not be getting any votes from us for them.
_________________