T Nation

Bailout & Dave Ramsey

I didn’t post this in the politics forum, because this request isn’t meant to be political. Rather a call to all Americans.

If you’ve heard of Dave Ramsey, you know he knows his shit when it comes to money.
Click the link

http://www.daveramsey.com/etc/fed_bailout/3_steps_to_change_the_nations_future_10928.htmlc?ictid=sml

That link is not working for me.

The server may be overloaded.

But here is the heart of the link JH was trying to get people to look at:

[i]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.

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.[/i]

His website is down. Looks like he knew too much to keep around…

It should be back up now. I just went there. The traffic is probably blowing out their server space.

[quote]Majin wrote:
His website is down. Looks like he knew too much to keep around…[/quote]

LOL

Thanks for the summary, Rainjack. My dad gave me one of his books a couple months ago and I’m a big fan now. Maybe he should be running for pres, lol. :smiley:

Is that the same email he sent out last Friday?

Dave Ramsey should be required listening.

I was just on his website 15 mins ago. Like RJ said, he’s probably getting pounded with traffic

Yeah, I actually just got an email from him with some new info.

I emailed and left phone messages with my rep and senators last Friday. Guess how many I have heard back from?

[quote]theAnj wrote:
Thanks for the summary, Rainjack. My dad gave me one of his books a couple months ago and I’m a big fan now. Maybe he should be running for pres, lol. :D[/quote]

I am an accountant by profession. I have the entire library of his products, and I feel it is my responsibility to loan it out to all of my young and/or newly married clients.

Putting his principles to practice changed my life.

Well it’s a very novel thing to actually have a plan of action. Brains still inhabit our great land.

What bugs me is the probability that everything will be done as above, except the part where generous reward mechanisms for CEOs and their closest aides are removed.

Still better then bailing them out. Maybe if it’s allowed to crash and then see what can be made of the situation. It’s businesses that don’t produce anything, so most of the crashing will still be virtual.

[quote]rainjack wrote:
theAnj wrote:
Thanks for the summary, Rainjack. My dad gave me one of his books a couple months ago and I’m a big fan now. Maybe he should be running for pres, lol. :smiley:

I am an accountant by profession. I have the entire library of his products, and I feel it is my responsibility to loan it out to all of my young and/or newly married clients.

Putting his principles to practice changed my life. [/quote]

Yet you give me nothing.

[quote]analog_kid wrote:
Is that the same email he sent out last Friday?

Dave Ramsey should be required listening.[/quote]

I don’t think so, but I don’t get his emails, so I’m not sure.

This is his bailout plan, which he said he posted this morning.

[quote]rainjack wrote:
theAnj wrote:
Thanks for the summary, Rainjack. My dad gave me one of his books a couple months ago and I’m a big fan now. Maybe he should be running for pres, lol. :smiley:

I am an accountant by profession. I have the entire library of his products, and I feel it is my responsibility to loan it out to all of my young and/or newly married clients.

Putting his principles to practice changed my life. [/quote]

I recently started reading his The Total Money Makeover book based on yours and jehovasfitness’ recommendations in a previous thread. Thanks again!

This is getting interesting. I’m curious to see exactly how the American people use the power of their free representation. You all are fired up, right on. Go kick some congressional ass and a senator or two.

[quote]AngryVader wrote:
rainjack wrote:
theAnj wrote:
Thanks for the summary, Rainjack. My dad gave me one of his books a couple months ago and I’m a big fan now. Maybe he should be running for pres, lol. :smiley:

I am an accountant by profession. I have the entire library of his products, and I feel it is my responsibility to loan it out to all of my young and/or newly married clients.

Putting his principles to practice changed my life.

I recently started reading his The Total Money Makeover book based on yours and jehovasfitness’ recommendations in a previous thread. Thanks again![/quote]

That book changed my life. My grandmother gave it to me a few years out of the blue. I don’t think she or I knew how badly I needed it.

[quote]analog_kid wrote:
AngryVader wrote:
rainjack wrote:
theAnj wrote:
Thanks for the summary, Rainjack. My dad gave me one of his books a couple months ago and I’m a big fan now. Maybe he should be running for pres, lol. :smiley:

I am an accountant by profession. I have the entire library of his products, and I feel it is my responsibility to loan it out to all of my young and/or newly married clients.

Putting his principles to practice changed my life.

I recently started reading his The Total Money Makeover book based on yours and jehovasfitness’ recommendations in a previous thread. Thanks again!

That book changed my life. My grandmother gave it to me a few years out of the blue. I don’t think she or I knew how badly I needed it.
[/quote]

It changed my Dad’s life. It’s in the process of changing mine now. :smiley: I didn’t know how badly I needed it either. I was one of those people who thought I was fine just because I’ve always refused to be in debt. Not being in the hole does not equate to being financially responsible. I LOVE that book.

Interesting. Does his religious beliefs crop up in his writings on finances? Is this why some people say his books are so life-changing, that they incorporate faith-based practices?

[quote]RhunDraco wrote:
Interesting. Does his religious beliefs crop up in his writings on finances? Is this why some people say his books are so life-changing, that they incorporate faith-based practices?[/quote]

To be honest, I hate religion, but his “preaching” doesn’t bother me.