The merits of the bail out deal can be debated until the end of time. All the arguments are compelling:
- Why reward risky behavior?
- Why should the tax payer bail out wealthy wall street?
- If we don’t the economy will suffer.
- With out a bail out the credit market comes to a halt.
No matter what you believe, the lack of a deal leaves us in uncertain times. That is why the Dow dropped nearly 800 points. Investors do not like uncertain times.
As much as I hate the thought of bailing out the Titans of Wall Street, I just want the doom and gloom to stop. I think the only way it does stop is with some kind of a deal.
How serious are our lawmakers about solving this crisis? We shall see, getting re-elected may be more important. Election day is not far off and the incumbents have not had much time to do any campaigning. Let’s see if they choose to do that instead of staying in D.C. to hammer out a deal that will calm the American Investor.
September 30, 2008 at 10:44 am |
$1,000,000.00 For Everyone! (Almost)
I want to have someone that is much smarter than I am tell me why this will not work at least twice as well as what the people in Congress are trying to pull and cost half as much!
The main reason behind the current economic crisis, as I have heard it reported, is the looming threat of all of the bad loans that are facing the lenders that made poor business decisions when they chose to make the loans in the first place.
The government is considering 700 Billion in a plan that is supposed to forestall the crisis. As of yet I have heard no guarantees that it will work and lots of speculation as if it will work at all! One thing is certain; this will increase the already tremendous national debt that we will be passing along to our children and their children.
Since I heard Russell Crow mention the 1 million to everyone in the U.S., I am sure that idea is now fairly widespread. My question is why we couldn’t make it work with some conditions!
First and foremost!
This is an incredible step that no government should be responsible for. Those that facilitated this mess should be identified and held accountable!
Second,
Anyone found trying to “work around” or otherwise cheat the proposal will be immediately ineligible, and subject to fines and even jail time.
Make it Taxable!
Lets say this is subject to a 30% tax rate so the Treasury gets back $300,000.00 for every million distributed, lowering the overall cost of the plan by around 91 billion, now we are talking about a 214 billion bailout!
Not Everyone gets a Million Bucks!
Let’s make it a two person per household limit. If you are single, I am sorry; all you get is a million bucks. If there are 15 families under one roof, sorry limit two. This reduces the total package even more.
What about the Housing Crisis?
No problem, the first condition is that 100% of the after tax benefit will go towards the payment of the current mortgage(s) by the recipient. If you owe more that that, the balance will be renegotiated any excess housing either refinanced or the home sold. All bad loans will be funded, people will have equity in their homes.
But the US Auto Makers Need Help Too
Please… OK a second condition is that every recipient of the 1 million dollars buys a new American car with any of the funds available after all mortgages and taxes are paid. Not a foreign company that manufactures here in America, a car made by an American company. Oh, sides note to the American auto makers, pull your head out and make cars people want!
But There is No Personal Wealth
Look I can’t solve every problem but let’s say that whatever is left after taxes, paying your mortgage(s), buying a new car should be conditional. Let’s say that 40 of anything remaining be put into an interest bearing account for a minimum of 24 months. Perhaps some conditions foe emergency medical or similar provisions, but they better be real and verifiable.
You Have to Have Been Accounted for in 2008
Sorry, but this plan will only be available to US citizens and or resident aliens that had the correct status as of a given date in recent history, lets say April 15, 2008. Please this is no time for pandering bleeding hearts.
People Will Just Blow the Money
Yeah, I suppose there are a good number that will. And I guess that will help stimulate the economy a bit faster. Look, if we are going to do something drastic, let’s put the regular Joe and Joan in control. Yeah, there will be people that do irresponsible things, but there will be a lot that do the prudent things also. Invest in the education of their families, start new or invest in existing businesses, save for retirement, initiate a savings and investment program. History has proved repeatedly that if you let our government control large sums of money, there is tremendous waste, corruption, and misuse of an awful large portion of those funds.
Look, I Know There Are Adjustments Needed
The facts are, the people in control in Washington are pulling the strings behind closed doors and we are acting like they are really going to do what is in our best interest. If we are going to foot the bill, and a very large one at that, let us have a crack at making things work out. Or at least show me a better plan!
I am Skip Borders and I wrote and approved this message.