Dave Ramsey supports an alternative plan to the bailout that will keep us from growing our national debt.  He shares three steps that we can take to change our nation’s future:

1. Pray for our leaders.

This isn’t optional .  We must pray for our leaders.

First of all, then, I urge that supplications, prayers, intercessions, and thanksgivings be made for all people, for kings and all who are in high positions, that we may lead a peaceful and quiet life, godly and dignified in every way.  This is good, and it is pleasing in the sight of God our Savior, who desires all people to be saved and to come to the knowledge of the truth, (1 Timothy 2:1-4, ESV).

Ask for wisdom for them as they contemplate this plan.  In particular pray for members of the House since the Senate passed the bailout plan yesterday.

2.  Send the Common Sense Fix

Read the plan (will include below) copy the info below and then send it to your Senators (too late unless the House defeats it) and Representatives.

3.  Tell others.  Send the link to his page to everyone you know.

Ramsey’s Common Sense Fix

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 he 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.

6 comments
  1. You know, I have no clue what is going on with economy other than it is in bad shape according to everyone around me. (I’ve just been really busy and haven’t caught the news at all). Plus that and my mind isn’t a numbers thing at all so the economic jargon doesn’t make much sense to me with out deep deep DEEP thought. If I had more time on my hands, I would think about it more.

    But I love Dave Ramsey. This is simple and clear cut. Seems realistic and very doable AND it will have a attainable outcome.

  2. You know, I have no clue what is going on with economy other than it is in bad shape according to everyone around me. (I’ve just been really busy and haven’t caught the news at all). Plus that and my mind isn’t a numbers thing at all so the economic jargon doesn’t make much sense to me with out deep deep DEEP thought. If I had more time on my hands, I would think about it more.

    But I love Dave Ramsey. This is simple and clear cut. Seems realistic and very doable AND it will have a attainable outcome.

  3. You know, I have no clue what is going on with economy other than it is in bad shape according to everyone around me. (I’ve just been really busy and haven’t caught the news at all). Plus that and my mind isn’t a numbers thing at all so the economic jargon doesn’t make much sense to me with out deep deep DEEP thought. If I had more time on my hands, I would think about it more.

    But I love Dave Ramsey. This is simple and clear cut. Seems realistic and very doable AND it will have a attainable outcome.

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