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Sunday, September 28, 2008

The Bailout

With news today of there being a final deal on the bailout, I was happy to see this article by Dave Ramsey. I don't think I could agree with him more than I do. He's right on the money, in my opinion, with his solutions for the current problems on Wall Street.

What do you think of the bailout?
I think it's a disaster. It's the largest government department ever formed in the history of man, and they are doing it in five days, and they are doing it based on a spirit of fear.
There are other things we could be doing to calm markets. All of the Bush administration appears to be in a dead dog panic. I'm afraid it's going to pass, but that doesn't mean we're going to like it.

What do you recommend instead?
Change the market accounting rules. Do away with the capital gains tax, which will cause money to flood into the market instantaneously in 24 hours. Last, if we do need to do some insurance of some of these bonds, we can insure them rather than just buying them all. Only 7 percent of them are in foreclosure, while 93 percent of them are paying, so why are we buying them all—so we can make Paulson king?


Read the whole article here.

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4 comments:

JayBird said...

Now why can't this be broadcast on the national news?
Screw the Economy, I'm going to start my own farm and live off the fat of the land...

klasieprof said...

I was listening to BBC Radio, and the best thing of it was to say that INVESTORS should take the biggest hit, and be taken down to zero, before ANY bailout.
In any market that makes sense. Investors are 'primed' to take the hit, the Govt. should not bail out those who do. If so, I have a duplex in Mt. Pleasant for a great price.

David Young said...

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Matthew said...

I haven't really known what the best course of action was for this, but I'm kind of glad the bailout failed. In fact, I'm cautiously optimistic that this might turn out to be a good thing overall (it might take 20 to 30 years to be made fully manifest). I'm hoping, if nothing else, it will be a stake in the heart of what I consider to be some unhealthy tendencies in this country.

Of course, this is neither here nor there--how are you holding up, Robb?