The Congressional Bailout Plan

On Monday, a $700 billion bailout plan failed to pass in the U. S. House of Representatives.  Many members of Congress, both Democrats and Republicans, have spoken out on the bill, some to defend it, and others to stand against it.  Fox News reports that the general consensus in Washington is that something must be done to stabilize the economy. Please pray for our country in this key time.

CLICK HERE to see how your Representative voted.

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2 Responses to The Congressional Bailout Plan

  1. Brian Stigall says:

    I agree with the Dave Ramsey plan:

    The Common Sense Fix

    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-
    step 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.

  2. Brian Stigall says:

    The Common Sense Fix

    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-
    step 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.

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