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Tuesday, September 30, 2008

The Aftermath

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.


steenky bee said...

I am just speechless about the whole bail out thing. My mouth just hangs open whenever something new comes out about it. These are some scary times. My MIL announced that bought a whole mess of rice and beans for tough times and I thought she was crazy. Now, I'm thinking not so much anymore.

P.S. I can't wait for Thursday's VP debate.

Anonymous said...

I was going to leave a serious thought provoking comment about the bailout, but then I read Jen's comment and now think there's going to be as much stink at her MIL's house as there is on Capitol Hill. My serious thought provoking comment? Gone like a fart in the wind. (From a bean.) (See how I tied that all together?) Thanks for stopping by! When are you jumping the pond?

Lola said...

Oh, honey, you and I are both ranting about the idiots today. Glad I'm not the only one. You go, girl!

Captain Dumbass said...

A small part of the reason I'm sitting at home now with the kids and not working is because of fucktards in my Canadian bank sinking too much money into your mortgages. THANKS! Actually, I'm really enjoying the whole unemployed thing, but I have to shake my fist at the man.

Does it worry you how much your country owes the last remaining COMMUNIST superpower in loans?

Dawn said...

The US economy situation is big news here in Canada, too. I've seen some of my meager retirement savings dwindle as a result. It's great to read the well-thought-out opinions of real American citizens, as opposed to listening to the news only.

Anonymous said...

Ethics is gone as far as big biz is concerned. It's way past time to try to legislate it.

Anonymous said...

It's a complete disaster, the whole thing. And I get screamingly, red-faced, irately pissed because *I* have been financially responsible -- compulsively so -- for all these years, but I'm in the minority here...

And yes, Captain Dumbass, it worries us a LOT.

Ann Harrison said...

(I'm following you from "The Stilleto Mom." Not in a 'stalker-ish way though, promise.)
I really like this post.
Actually I like them all!
Did you watch the VP Debate last night?

Kat said...

Hi Ann,
Thanks for stopping by. I am glad you like my writing *blush*. Yes I watched the debate last night, mind you during the commercials of the Cubs game (priorities). It just struck me as more of the same.