Tuesday, September 30, 2008
My husband's birthday was a complete bust. Quite fitting that the stock market would crash the same day and the "bailout" would also fail that day. Lets just remember just like birthdays this failure of the market gives us a fresh canvas to work with. While our congressmen go off on their vacation (didn't they just have a vacation?) it gives the American people time to explore different alternatives than throwing $700 billion at the problem. Remember, as Americans our congressmen are employed by us. If they don't do their job they should be fired. This means if they can't fix this problem, we should not reelect them. I don't care what party they are. Ok I am about to go off on a tangent. Let me get my soapbox ready.
The American people should not go into DEBT to fix our economy. When our government buys BAD LOANS they become the peoples BAD DEBT. Giving the people who caused this problem $700 billion dollars to fix the problem when they couldn't handle the situation right the first time makes no sense. Do I want our economy to fail? No. Do I want stock brokers jumping out of windows on Wall Street? No. What I want is a common sense answer to the problem.
Now, in full disclosure, I listen to Dave Ramsey religiously. He is smart. He has been to bankruptcy and back. He knows what it is like to live on beans and rice. He never advocates going into debt for anything. He thinks this bailout is incredibly stupid. Which is what I thought before I even heard him speak on the subject.
Now his plan to jump start the economy and fix this problem makes a little more sense to me than just throwing $700 billion at the problem. His plan consists of a couple of things. First- remove the mark to market accounting rule. This accounting rule was instituted after Enron. Basically the government tried to legislate ethics and made running a publicly traded company a pain. Second extending insurance to these sub-prime mortgages. Then the people would only be on the hook for the mortgages that actually foreclose, not all the mortgages. He has also mentioned lifting the capital gains tax to let money more freely flow into the market. Here is a podcast that can explain it a little better than I can. There is also a transcript here.
Now I am not a financial genius, but I am mad as hell and I am not going to take it anymore. If I can do anything to prevent this gigantic mess of a bailout from ever happening, I will. I have already called my Senator, which will do me little good because it is the Honorable Lindsay Graham of SC and he will not change his vote on this mess. He made this very clear on TV. But I tell you one thing. He will not get my vote this year. I don't care what party he represents. Way to go there Sen. Graham, you just lost a vote.
Posted by Kat at 6:29 AM