Tuesday, September 30, 2008

3 steps to change our future - dave ramsey

Here's Dave's recommondation for all of us to send to our congress. I sent it to McCain and Kyl and plan to send it to the house guys. Here's Dave's suggestions of what to do!

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.


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.


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.


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.

Please forward this url to everyone you know...and let's blitzkrieg Washington. Go here to find your Senator and here to find your Representative then copy and paste the above letter - place it in the online form.

Go here to find out how your elected officials voted the first time.

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texasholly said...

So unfortunate he is not in congress.

Sarah Mae said...

I just started listening to him and he's good. I also listen to Crown Financial's Money Life, and they agree that the bail out that is proposed is a bad idea. I just hope our country learns from this.

Lylah said...

I fear they are not listening and will plumet us (but then again we voted all of them in office) and so we plumet ourselves into a dark hole....and there perhaps many will find God's mercy.

My friend, Anita, keeps reminding me of the OT scripture that says it's God who closes up the heavens and when his people (those called by his name) turn and cry out, he'll listen and open the heavens.

I'm preparing for a depression worse than my grandfather talked about. How about you?

6HappyHearts said...

Love Dave & I'm not preparing?!
Our state's economy is up at this time so I think we are in a state of denial.