Re: OT The Common Sense Fix..
- From: "Just plain \"Dusty\"" <RV-dragger@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx>
- Date: Tue, 30 Sep 2008 11:46:10 -0700
Not a bad idea at all. Thanks for posting it, "Gar".
Dusty
"Gar" <olgar2@xxxxxxxxxxxxx> wrote in message
news:48e26ef9$0$12390$c3e8da3@xxxxxxxxxxxxxxxxxxxx
....
The Common Sense Fix ...by Dave Ramsey....
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.
.
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