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The 3 step bail-out solution?

I am asking the same question yet again because I an honestly looking for more feedback. I have received some that I like, but so much is based on emotions and not facts. How about some facts! I do not like the idea of giving a hand out to anyone. but lets face facts-there is going to be some type of program passed-congress just can't pass it up. They LOVE doing this stuff! If I have to have a bill forced on me, this is the idea I like best so far. On the Dave Ramsey website I found this plan. In a way it sounds very good. Maybe too good? I actually like it so far, Can you take a look at it and tell me what you see that is wrong? Could it really be this simple? Or this cheap? Here it the text of the plan. I will list the link below. 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. So what do you think? Oops-I forgot the link! Look under Common Sense Fix: http://www.daveramsey.com/etc/fed_bailout/index.html

Public Comments

1. If we must do something, then this is a much better start as opposed to MORE DEBT. The Treasury is broke, that is what we call a deficit. We have to borrow money from over seas to get the 700 billion that is supposed to save us. It is like one of use filling for bankruptcy, while we apply for more credit cards. Doesn't make much sense huh?
2. That would make sense, and be a good thing. That's why the politicians won't do it. What would be in it for all the corrupt politicians?
3. I love Dave Ramsey. Anyone that hasn't heard him speak or taken a look at his plans for financial success should do so immediately. I had not heard this plan of his but I love it. I keep saying something needs to be done but this bailout isn't it. His plan sounds effective and much more economical. I wish congress would look at this instead of adding even more things to bankrupt the country. Just sent the plan to my Senators and Representative. Doubt they will look at it but one can only hope.
4. Sounds good to me, but unfortunately our government are not smart enough to get the help from true experts. The same people who were part of the failed companies/economy are the same clowns that are trying to fix it. Are we bailing us (we the people) out, or them? A failed company is obviously one that did not make smart decisions. Do we want them back in the market? I do not respond well to the media/government threats about our economy failing if their bill is not passed.