Convention of Statesmen

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Now that's a plan!

I received this in my email today! Loved it! Sounds a lot better than what the government is proposing. What am I talking about? The bailout. I don't like it. Now, I was willing to tolerate it when McCain proposed complete transparency and an oversight committee comprised of Mitt Romney, Warren Buffet and Michael Bloomberg. We didn't get that. I don't know who killed that idea, but they're idiots. Or . . . they knew the above mentioned committee wouldn't recommend 25% of the $700 billion going to earmarks and pork. Or maybe they knew they wouldn't be able to rob the American people blind with this committee in place. Whichever it was . . . they killed those ideas.

So I like this one:
Subject: The Economic Recovery Plan For All Americans

How about giving $85,000,000,000 to all Americans instead of AIG? To make the math simple, let's assume there are 200,000,000 bonafide U.S. Citizens 18+. Our population is about 301,000,000 +/- counting every man, woman and child. So 200,000,000 might be a fair stab at adults 18 and up.


So divide 200 million adults 18+ into $85,000,000,000 that equals $425,000.00.
Give $425,000 to every person 18+.

Of course, this would NOT be tax free.
Assume a tax rate of 30%.

Every individual 18+ has to pay $127,500.00 in taxes.


That sends $25,500,000,000 right back to Uncle Sam.


But it means that every adult 18+ has $297,500.00 in their pocket.


A husband and wife has $595,000.00.
What would you do with $297,500.00 to $595,000.00 in your family?

Pay off your mortgage - housing crisis solved.


Repay college loans - what a great boost to new graduates.


Put away money for college - it'll be there.


Save in a bank - create money to loan to entrepreneurs.

Buy a new car - create jobs.


Invest in the market - capital drives growth.

Pay for your parent's medical insurance - health care improves.

Enable Deadbeat Dads to come clean - or else.


Remember this is for every adult U S Citizen 18+ including the folks who lost their jobs at Lehman Brothers and every other company that is cutting back. And of course, for those serving in our Armed Forces. If we're going to do an $85 billion bailout, let's bail out every adult U S Citizen 18+!

As for AIG - liquidate it.
Sell off its parts.

Let American General go back to being American General.


Sell off the real estate.
Let the private sector bargain hunters cut it up and clean it up.

Oh yeah, I like that! But since we know the federal government, our elected representatives and officials couldn't care less about the American people it won't happen. Too bad. And while the above plan doesn't have a snowball's chance in Hades, I think the Dave Ramsey plan does. As soon as I can find a link to his plan that works I'll give you the details here.

Oh, by the way. The math doesn't really work, so you have to apply the fuzzy math our federal government uses, then it works perfectly!

Update: It finally occurred to me to Goggle Dave Ramsey's plan. Amazing what a high fever will do to your brain! So here it is, the answer to America's problems rather than the $700,000,000,000 bail out plan currently being carved into earmarks and pork instead actually being used for the purpose it was created:

The Common Sense Fix

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 threestep 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.

It is my suggestion you copy the Dave Ramsey plan in its entirety, or use the link to gain access to the PDF file and email it to your congressmen and senators. That's what I'm going to do as my senators seem to think the bailout without the appropriate oversight and transparency think it's a great idea.
Now that's a plan! Now that's a plan! Reviewed by Candace Salima on Thursday, October 02, 2008 Rating: 5