Dave Ramsey’s Common Sense Fix to Our Economy

A common sense fix that will not cost 700 BILLION dollars!

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.  

 

Go to Dave’s website here to read more, and find info to send to your congressman

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