Ron Paul: Don't Ask for a Bailout

I am 83 and living on SS and a couple of small retirement funds. I am sorely against the govt bailing out big business, and putting a huge burden on taxpayers to do it. It looks to me as if the gov't is simply bailing out the fat cats who made a big mistake, loaning too much money at too low a rate to many fools who were willing to assume debts in amounts they simply couldn't afford.

But I am fearful that, if they don't do the massive bailout, that my retirement will be negatively impacted. What do you advise?

Pat Carnohan of NM 1:39PM October 03, 2008

The Senate vote for this multi-billion dollar bailout doesn't mean a thing. The media is sending propaganda saying it's a done deal just so the American People will shut up. Well, guess what. We are not ignorant.

I myself am very much against the bailout. Let these fat cat mortgage loan companies that messed things up see what it's like to struggle. Think about all of the foreclosed citizens they already kicked to the curb because of their greedy deeds.

Fellow Americans, educate yourself. See what's really going on by going to larouchepac.com

Here's a new word for Fanny Mae, and all the other mortgage companies that want help: Bankruptcy.

August Murray Jr. of TX 8:03PM October 02, 2008

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 citizens, we will not support any congressperson who votes to implement such a policy. Instead, I submit the following three steps:

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.

of TX 12:36AM October 01, 2008

Ron Paul - a lone voice of reason in this silly season. Just say no to the bailout - revised or otherwise

Investigate and prosecute the culprits, congresscritters as well as top executives who participated in the routing, including Obama who received hundreds of thousands from them and Paulson who helped get us into this mess.

Katie Smith of TX 11:01PM September 30, 2008