Q & A: Dave Ramsey
Interview by Sarah Pulliam | posted 9/26/2008 11:13AM [Christianity Today]
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?
Kent comments:
Many people find this whole mess very confusing, because it is. Many financial advisor people are saying that something like what Congress is now trying to do is essential. They are wrong, and Dave Ramsey is exactly right.
Those market accounting rules require that at the end of each day, securities that no one would buy that day be counted as worthless. But a mortgage that no one wants to purchase today is not necessarily worthless. It is worth at least what the property it is on could sell for on the market, which, while it might be lower that it once was, is never nothing.
Dave Ramsey’s prescription would work, and work much better than the proposed total government buyout. But, of course, Congress - especially one controlled by Democrats - is never going to pass any such prescription. Can you guess why?
Because it is a solution that removes power from government, rather than giving government more power. Once you put the words 'remove' next to the word 'tax' Congress is sure to balk. Government meddling in markets is what caused this mess. It can be solved by taking away that very meddling.
But expecting government to limit itself is a bit like expecting water to run uphill.
1 comment:
Maybe this could work instead:
GOVERNMENT GUIDANCE NOT FINANCE!
"America's Good Neighbor Plan"
1) America has always been know for helping our neighbor in times of need. For example, taking a meal or clothes to a family whose home has been destroyed by some catastrophe, or when a family member is ill.
That is what needs to be done now
There are enough fortune 500 companies, billionaires, millionaires, and industries, including entertainment and film to handle this ourselves. Ask every American that CAN to invest.........We can do this. We should NOT even go back to the floor except to develop a new plan regarding certain restrictions on the banking/finance industry but NOT TO FUND any investment or bailout.
2) THE ONLY INVOLVEMENT OR "RESCUE PLAN" BY THE GOVERNMENT, SHOULD NOT INVOLVE ANY FUNDING BUT RATHER LEGISLATION, OVERSIGHT, AND PROTECTION, SUCH AS IMMEDIATELY INCREASING FIDC TO 250,000 TEMPORARILY UNTIL FURTHER EXAMINATION OF THIS LIMIT CAN BE ASSESSED(INFLATION)( TO CALM AND REASSURE AMERICANS(AS AN ADMINISTRATION IS REQUIRED TO DO)
3) The only OTHER involvement with the government would be to maybe offer program to invest part of a tax return or portion. But to demand it is like the police coming to your door and demanding that you bake a plate of cookies for person across town. Especially when some people have it very hard now.
SUMMARY-America's Good Neighbor Plan:
1) Encourage any corporation, industry,or American that can to donate/invest in our financial market.
2) Don't go back to congress(except to offer incentive programs for those who invest) AND TO INCREASE FIDC.
3)EVERY CITIZEN NEEDS TO TRY AND BUY MORE WITH CASH, KEEP UP ON CREDIT DEBT PAYMENTS, BASICALLY DO THEIR PART.
3) Have faith in our economy,country,and people!!
AMERICANS NEED TO DEMAND THAT OUR ENTIRE ADMINISTRATION CALMLY AND OPENLY PROVIDE US WITH CONFIDENCE NOT PANIC.
AMERICANS DESERVE REPRESENTATION BY OUR CONGRESS. WE NEED TO BEG OUR REPS AND SENATORS TO LISTEN.
YES, SOMETHING NEEDS TO BE DONE, BUT NOT THIS...GOVERNMENT GUIDANCE, NOT FINANCE!
(PS. IF THE PROPOSED PACKAGE TO GO TO VOTE IN THE SENATE WED PM IS PROBABLY TO ADD 1 TRILLION TO OUR NATIONAL DEBT-WE CAN NOT AFFORD THIS)
(NOTE TO AMERICANS, DONT LET ALL THESE PEOPLE TELL YOU THAT THIS IS THE ONLY THING THAT WILL SAVE YOU. WE WERE COMING HERE FOR AWHILE. YES THINGS IN WALL STREET AFFECT MAIN STREET. BUT ITS NOT AS BAD AS THEY SAY (WALL STREET ALWAYS SURVIVES-ESPECIALLY IN A CONFIDENT AMERICA) DONT YOU SEE- THEY KEEP SAYING THE SAME THING ALMOST ALL IN SUPPORT HAVE POSTED ALMOST THE SAME SENTENCE ON THEIR WEBSITES;
THE PROPOSERS OF THIS(YOU KNOW THE ONE GUY THAT USE TO WORK AT ONE OF THE COMPANIES THAT WOULD BENEFIT)SAID A WEEK AGO THAT WE WERE "DAYS AWAY" FROM A COLLAPSE OF OUR ECONOMY.
EVERYONE CALM DOWN, TRY AND PAY A CREDIT CARD BILL, AND THEN GO OUT AND BUY YOUR CHILD AN OUTFIT, BOOK, OR TOY, OR WEEKEND AWAY TOGETHER. WE CAN DO THIS WITHOUT SOCIALISM.
IF THIS IS DONE ALL CHILDREN IN AMERICA SHOULD IMMEDIATELY QUALIFY FOR MEDICAL CARE AT NO COST, AND MUSIC AND ART RETURNED TO THE SCHOOLS, AND FINALLY UNIVERSAL RX FOR THE ELDERLY!$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
DO SOME OF THESE THINGS, RAISE FIDC, MAYBE OFFER INCENTIVES TO INVEST TO AMERICANS THAT CAN AND WANT TO INVEST WITH THEIR W2 RETURNS,ETC.
ONE FINAL NOTE, REMIND AMERICANS(REASSURE)THEM THAT THE STOCK MARKET IS A GREAT PLACE TO INVEST, BUT IT SHOULD NOT BE ONES ONLY RETIREMENT....AMERICANS NEED TO HAVE SAVINGS, ETC. (THIS WOULD REASSURE THEM AND START THEM TO THEIR OWN PATH OF RESPONSIBILTY TO PLAN FOR THEIR RETIREMENT-ESPECIALLY SINCE OBVIOUSLY OUR SOCIAL SECURITY PROGRAM MAY BE, WELL, FRAGILE).
S.ERCKENBRACK
337 Moorland Street
Vallejo, CA 94590
dse05@yahoo.com
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