The Dave Ramsey Plan

The Dave Ramsey 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. As a tax-paying American citizen, I will not support any congressperson who votes to implement such a policy. Instead, I submit the following three steps:

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.

Darrell Castle: Something Wicked This Way Comes

SOMETHING WICKED THIS WAY COMES
by Darrell L. Castle
Constitution Party 2008 Vice Presidential Candidate

Laws, originally evolving out of the New Deal legislation written in response to the great depression, once protected the American financial system. Starting in the 1990’s, in response to intense lobbying efforts by the financial industry, those laws were stripped away. The most important one was Glass Steagall which separated commercial banking from the type of investment work of a stockbroker. Glass Steagall was signed out of existence in 1999 by President Clinton and less than 10 years later the entire financial system is bankrupt. Another law, known as The Uptick rule, prevented companies from crashing due to large scale shorting of company stock. A company’s stock could not be sold short as long as it was in continuous decline. Short sellers had to wait for an uptick in the stock before shorting. The Uptick Rule ended in 2007 just about one year ago.

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McCain Urges Treasury to Act Without Legislation on Bailout

Republican Presidential candidate John McCain “Speaking on morning television, the Arizonan urges the Treasury Department to address the economic crisis on its own by buying $1 trillion in mortgages and tapping its exchange stabilization fund. Also backs raising the FDIC insurance cap to $250,000.”

http://thepage.time.com/2008/09/30/“i’m-not-going-to-parse-every-answer”/

So, in other words, Congress failed to pass an unconstitutional bill.  So, the Republican candidate for President wants the Executive Department to act anyways; he wants them to do something that they have no authority to do.  So much for the Constitution.  And this is who “Conservatives” want for President?  I chose Door # 3; Chuck Baldwin for President!

Potty Mouth

As you guys know, we’ve been working on potty training Mikey.  Currently, we are using a potty chart and each time Mikey uses the potty, he puts a sticker on it.  He gets rewards based on the number of times, although recently, every time he goes, he gets a little mini bag of M&Ms.  A night or two ago, Mikey was about to go to bed and told us he had to go pee-pee.  I took him into the bathroom and he went pee-pee.  Afterwards, we went into Mommy’s office and he got a sticker and put it on his potty chart.  He then asks Amanda & I “What do I get”?  Mommy told him that he got a sticker for his potty chart.  Mikey looks at her and said “What do I get to put in my mouth?”

WaMu failed

The largest banking failure in US history happened a few hours ago when the Office of Thift Supervision took control of the Bank.  J.P. Morgan Chase purchased the banking assets for $1.9 billion dollars.  To quote the AP: “One positive is that the sale of WaMu’s assets to JPMorgan Chase prevents the thrift’s collapse from depleting the FDIC’sinsurance fund.” (source).  The new JPMorgan Chase is now the 2nd largest bank in the United States.

As a customer of WaMu (or rather, I guess, former customer), WaMu customer support has gotten horrible over the last several months and I think they would have failed at some point because of it.

I believe that this whole mess has been the end game that has been going on behind the scenes for many years…

Update: 11:05 pm – I believe that this bank failure was due to the “bailout” falling apart tonight.  The powers that be decided that the Senators needed some “motivation” to get something passed.  What a better way to do that than to have the largest bank failure in US history happen the day before the deadline that Secretary Paulson said this bailout had to be passed by or else the entire economy would collapse…  Mark my words, this “bailout” will pass at least one chamber tomorrow, if not both, in time for John McCain to triumphantly arrive at the debate at the University of Alabama…

Update on "One Angry Democrat"

In February of 2007, I wrote about a conversation that I had with “One Angry Democrat“. I went over to her house again today. Surprise, surprise, she is voting for John McCain. She doesn’t trust Barack Obama. Of course, I told her that I am supporting Chuck Baldwin, because he is actually planning on following the Constitution. She told me that she is a “Liberal Democrat”, just not as liberal of Senator Obama. I told her, as I’ve told you guys before, that I believe that politically, Senators McCain and Clinton are nearly identical, which is why so many Hillary supports (like this lady) is planning on supporting Senator McCain. It is said, though, that the Republican presidential candidate is as liberal as a Clinton.

John McCain's campaign suspension

Its all over the news today, Republican Presidential candidate John McCain has suspended his presidential campaign.  This means no TV ads, no fundraising, no campaign appearances and no debates.  He has headed back to Washington, DC to work on the “urgent” economic issues at hand.  Afterwards, he plans on resuming his campaign.  I was listening to KXNT’s Casey Hendrickson Show tonight and he and Heather were asking everyone if they thought Senator McCain had done this “for political gain” or “to put America first”.  I think the question is missing the real reason.  The Puppet-Masters have decided that this bill isn’t going anywhere fast.  Americans have started asking questions.  Recent polls are saying that most Americans are against the government bailout.  Yet, the Senate is pushing forward.  Now today, one of the puppets running for the Presidency announces that he will “suspend” his campaign until the crisis is over.   And what happens?  Americans have stopped talking about if the government should pass an unconstitutional bailout or not.  Now they are talking about if John McCain did this for political gain or not.  The entire conversation has changed.  And the Puppet-Masters are free to continue their push for socialism… and worse.

John McCain's campaign suspension

Its all over the news today, Republican Presidential candidate John McCain has suspended his presidential campaign.  This means no TV ads, no fundraising, no campaign appearances and no debates.  He has headed back to Washington, DC to work on the “urgent” economic issues at hand.  Afterwards, he plans on resuming his campaign.  I was listening to KXNT’s Casey Hendrickson Show tonight and he and Heather were asking everyone if they thought Senator McCain had done this “for political gain” or “to put America first”.  I think the question is missing the real reason.  The Puppet-Masters have decided that this bill isn’t going anywhere fast.  Americans have started asking questions.  Recent polls are saying that most Americans are against the government bailout.  Yet, the Senate is pushing forward.  Now today, one of the puppets running for the Presidency announces that he will “suspend” his campaign until the crisis is over.   And what happens?  Americans have stopped talking about if the government should pass an unconstitutional bailout or not.  Now they are talking about if John McCain did this for political gain or not.  The entire conversation has changed.  And the Puppet-Masters are free to continue their push for socialism… and worse.