Tag Archives: dave ramsey

Rant about the economy

I’m really getting frustrated with some of the discussion & talk about the financial situation our country is in and who is to blame and what we’re doing to solve it.  As I stated in an earlier post….I agree with Dave Ramsey that we can easily get out of this mess by making a few basic adjustments and give the people an option to get out.  Now today….the most powerful person in the world (arguably) Oprah Winfrey brought Ali from CNN on her show to try and explaining what happened.  Now, I’m sure he’s right with his facts…but what we’re all missing here is who is ideally responsible for getting us here.  We each need to take personal responsibility for the decisions and choices we make.  Here is what Ali said….Annie wanted to buy a house….she borrowed from the bank….they sold her loan to a bigger bank…..and they sold it to a bigger entity.  Typically this is OK….but when values of homes go down, people loose their jobs and the stock market crashes all at the same time….we have a problem.  Now poor Annie can’t pay for the expensive house that she probably shouldn’t have bought in the first place and her home gets foreclosed on.  Now the bank owns the home and their not in the business of taking care of empty homes.  Now, some are blaming the banks and they do hold responsibility for making loans when they shouldn’t have.  But it all comes down to personal responsibility.  WE can all qualify for more credit then we should….we need to have the self discipline to only take credit for and buy only what we can afford.  The “American Dream” is coming back to bite many people these days.  I think more than the banks, wall street, and politicians…..Annie is to blame.  Annie shouldn’t be using so much credit.  She should do her best to live within her means.  I personally spent over half of my adult life with consumer debt.  Not until Brenda & I decided to take personal responsibility for our spending and get control of it were we able to get out of debt.  The solution for our countries financial situation is for all of us to stop using credit to live and live within our own personal means.  Now, in full disclosure…I do have a mortgage on my home.  I don’t mean that we can’t buy a house until we pay cash…I mean our own consumer debt.  Putting things on credit when we really should be waiting to buy it.

What do you think?

3 steps to change our nations future

We are at a crucial time in our country’s financial history. Congress defeated the $700 billion bailout plan on Monday. However, they are revising it and trying to push it through again. Dave Ramsey is supporting an alternative plan that will keep our nation from going even deeper in debt.  Click Here for more information about solfing this problem and saving us from going further into debt.

Here is the plan that Dave Ramsey is suggesting to solve our country’s financial issues:

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.

This literally makes the most sense of anything I’ve seen out there.

Click HERE for more information about what to do next.