Economic Plan

I admit to being limited in my understanding of the economic meltdown. I am trying to read and listen and gain a better grasp of it. Until then, I have to rely on people with smarter brains than mine. I try to read and listen to people I trust. Dave Ramsey, author of Money Makeover and a number of financial resources had this economic plan on his website. I think it is a great first step:

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

The Nanny-nanny-boo-boo Election!

The political insult game is in full swing. Last week, Sarah Palin told a joke at the RNC about hockey mom's being "pitbulls with lipstick." This week Barack Obama said, "you can put lipstick on a pig, but its still a pig."

Let the outrage begin! This is just one of the many "outrages" the campaigns express on a daily basis. How dare they say this or that! I want an apology. All of this outrage, leads me to ask; Are we electing a President of the United States or a Kindergarten Hall Monitor?

All I can say to the latest round of "outrage" is WHO CARES? So what, Obama made a lipstick jab. So what, Palin mocked Obama's skills as a Community Organizer. GET OVER IT! Can someone, preferably someone running for one of two most powerful political offices in our country, please, pretty please with a cherry on top, grow up and address some actual issues? We have soldiers in the Middle East dying at the behest of our nation. We have taxpayers burdened by an albatross of a tax code. We are in desperate need of a new energy policy. We need to know how our new President and Vice President will handle delicate matters of international diplomacy. Instead of finding out what these candidates will actually do to address these issues, we are subjected to another round of juvenile lipstick insults.

I am open in my support for McCain/Palin because my first choice candidate, Mike Huckabee didn't make the cut. Living in Washington State, most of my neighbors are Obama/Biden supporters. Should I follow the leadership of our nominees and resort to playground insults? Kick my neighbor in the shin, maybe call him a stupid boo-boo head? Wait, he already got kicked, well shot actually, in the leg right about the same time he was losing his hand in Afghanistan when a grenade exploded. This is a guy who probably wants to hear about actual issues. We may differ on who gets our vote, but I'll show him respect and act like an adult. Too bad we can't get the same from the campaign trail.

Stupid Book

Karen Kingsbury, author of many Christian fiction books has a new children's book. It looks all nice and cheerful on the cover, but it should have a warning label.

I was shopping at Costco today and I saw it on the book table. "Oh," I said to myself, "Karen Kinsbury, I've read some of her books. I'll bet this is a great children's book." I opened it and didn't even make it through the introduction before I was crying. By the end of the book, I was standing in the middle of Costco weeping like a mad woman. I immediately grabbed my 13-year-old son and hugged him (still crying of course). "MOOOOOMMMM, what is wrong with you? You're embarassing me!" I, of course, bought the book and will subject all of my friends and family to the same humiliation when they read it and burst into tears. I haven't cried at a children's book since "I love you forever" came out.

I've read thick volumes on parenting, but in the beautiful succintness of those few pages, my perspective has been changed. As a homeschooling mom, many of Jake's behavioral and learning challenges feel overwhelming (like spending 6 hours on the roof of the house last week). Today, as I rushed to a back aisle at Costco to pull myself together, all I could think is, "there will be a last day homeschooling. There will be a last time helping him with a science experiment or reading aloud together." This morning I would have relished the thought of reaching the end of this often difficult road. This afternoon I am embracing even the hard moments and savoring the good ones. I needed this reminder and so do you. Buy this book!