I'm no economist, but free trade is free trade, if a company makes bad business decisions, it must reap what it sowed. Companies made millions giving underprivileged people mortgages. It is not an right to own a home, nor drive a new car, it is a privlage.
I'm no economist, but free trade is free trade, if a company makes bad business decisions, it must reap what it sowed. Companies made millions giving underprivileged people mortgages. It is not an right to own a home, nor drive a new car, it is a privlage.
What if you RENTED the home and drove a USED car...... will it be ok then?
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….and since Jesus Christ is the Almighty God, we cannot be defeated!
They need to do something, but I heard on the radio yesterday that this 700 billion is more like a trillion after you read the small print. Scary. Seems like there should be a better way.
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Those who say it cannot be done should not interrupt the people doing it. ~Chinese Proverb
When I was young and clever, I wanted to change the world. Now that I am older and wiser, I strive to change myself. ~
There's a lot I don't know, but I am against this bail-out or "Rescue Plan" as they want to call it now, and here's why. I just don't trust the gubberment!!!!!!! And I don't want them getting involved in trying to manipulate the market. It's not the job our forefathers gave them to do.
People and companies have gotten themselves into quite a big mess and it's finally come time for them to sink or swim. I say, so be it.
This is the same plan that was shot down earlier this week. the only difference is, they have sweetened the pot by adding some tax cuts the Republicans will like and some give aways the dems will like.
the heart of this bill is still a tax payer bailout with all the power given to 1 man. That being the secretary of the tresury.
That aint good.
__________________ If I do something stupid blame the Lortab!
Senate rescue bill puts pressure on Blue Dogs
By Bob Cusack
Posted: 10/01/08 12:05 PM [ET]
The Senate’s revamped financial rescue plan has put conservative Democrats in a politically difficult position because they are opposed to passing tax an Alternative Minimum Tax measure (AMT) without paying for it.
Conservative Democrats, or so-called Blue Dogs, have been adamant that AMT bills should be offset and adhere to pay-as-you-go rules. House Democratic leaders have touted pay-go policies, but have reluctantly passed unpaid AMT bills because the Senate has not been able to clear such measures with offsets.
McCain Statement on SEC Plan
Posted by BLAKE DVORAK
McCain economic adviser Doug Holtz-Eakin issued the following statement on the SEC's plan to relax mark-to-market accounting requirements:
John McCain is pleased to see that the SEC has finally decided to permit alternative accounting methods to mark-to-market accounting for securities where no active market exists. There is serious concern that these accounting rules are worsening the credit crunch, making it difficult for small businesses to stay afloat and squeezing family budgets. In March, John McCain called for a meeting of accounting professionals to discuss whether mark-to-market accounting was magnifying problems in the financial markets.
Soros floats alternative bailout plan with Dems
By Alexander Bolton
Posted: 09/30/08 11:19 PM [ET]
The billionaire financier George Soros, a major Democratic financial backer, is floating his own rescue plan among Democratic lawmakers who are uncertain what to do in the wake of a surprise defeat of a proposed $700 billion rescue package proposed by Treasury Secretary Henry Paulson.
Soros has outlined his plan in an opinion editorial in the Financial Times and circulated a concept paper among decision-makers.
Specifically, the liberal philanthropist has proposed that government funds should be used to recapitalize the American banking system by purchasing equity in banks and investment firms.
Robert Shapiro, chairman of Sonecon, an economic advisory firm, who served as Commerce Department undersecretary during the Clinton administration, raised questions about Soros’s proposal.
He said that if the government bought stock in troubled firms, a problem would arise regarding how Uncle Sam would be represented as a shareholder.
“How does the government vote the shares?” he asked. “It puts them in a potential conflict of interest. Regulatory interests may hurt the bottom line.”
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.
There must be other solutions and I'd rather explore them, before hastily passing an outragous bill like the one proposed. I've expressed this to both of my senators.
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