How about Dave Ramsey's Common Sense Plan?
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.
Common Sense Plan 1:
A. Insurance:
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 cost into the balance. This brings homeowners current and allows them a chance to keep their homes.
b. Cancel all prepayments penalties to encourage refinancing or the sale of the property to pay off 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 CEO's 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 job.
c. This backstop will cost less than $50 billion-a small fraction of the current proposal.
Market 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 cost the taxpayers 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 cost the taxpayers 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 is not a time for politics.
It is time for all of us, as Americans, to stand up, speak out, and fix this mess!
We have a few questions first that we would like to see addressed by the news media concerning the Economic Crisis:
1. How much will my taxes increase to pay for the bailout, rescue and/or buyout plan?
2. Please explain what the "horrific" consequences will be if a whatever-its-now-called plan is not enacted?
From what we understand McCain wants to cut my taxes.
3. Is that still relevant if we have to pay for this plan?
And, Obama wants to initiate several costly programs.
4. How is that going to work if we have to pay for this plan?
Contact Senator Evan Bayh and tell him "Hell NO" to the $700 billion Rescue at:
202-224-5623
202-228-1377 Fax
http://bayh.senate.gov/contact/email
