Way To Go...

Thanks to the "High Court" of Connecticut, there are now three states that have legalized gay "marriage." (If you can't hear the sarcasm in my voice, believe me...it is there.) Thanks to judges believing they are above the people, Constitution, and God, we have a country that is being run into the ground. (Oh I know - they are not the only reason, but they are at least a big one.)

We wonder why our nation is going down the drains, and then events like this happen. How in the world can anyone even argue for a gay "marriage"? That does not even fit the definition of marriage (marry = to join as husband and wife; [thanks Webster!]).

Well, while this happens, the Italian Prime Minister is now saying that the world financial markets need to close while the leaders of the world meet this weekend to form a new global financial system. Hmmm...

Well, at least Glenn Beck spoke passionately about the return of Christ on his nationally syndicated television show. Go Glenn!!!

In case you can't tell, I'm more than frustrated with our nation. I love it, but I'm FRUSTRATED and ANGRY at how our nation has been stolen from us by the socialists and de facto communists! Maybe it's time for a new revolution of the people. After all, isn't this nation based on "We the people..."?!?

More Economic Woes?

Well, don't call me an alarmist, but I've have been closely following the economic struggles of the world. Nation after nation is having to borrow money from other nations to prop up its economy and government. (Read about Iceland and how it could not even receive a loan for 4.5 billion dollars from the U.S., European Union, or the Internation Monetary Fund - all of which should be able to donate that in the blink of an eye...technically.) Now, what happens when those nations who loaned the money need it? Such practices between nations (at least at this time...) is just delaying a true crash. Furthermore, (and this is the important part), several "Central" banks have dropped their interest rates. In other words, several national banks worked in a cooperative effort to help head off a worldwide depression. Consequently, the United Nations, along with many, many, MANY, nations around the world have stepped forward calling for a global monetary policy, fund, and program. In essence, this is the first step toward a true global, one world, monetary system. Now, I know many of you are laughing at this point, but when you are reading the economic news and listening to the political/business leaders of the nations calling for such a thing, it does make you sit up and take notice. Besides, why couldn't this happen? Congress has already spent over $1,000,000,000,000.00 to help "aid" our economy (hello Socialism!!!). At this point, Congress is telling everyone that major changes are needed (including in the functioning of our government, etc.). You see, there are things happening that many people do not know about unless you are a news junkie (okay, I admit I watch too much news...).

I believe if this crisis continues much longer, there will be major changes that will propel us at the speed of light towards the return of Christ. Not that this should surprise us, but are we watching and really waiting for the return of Christ? I do not know.

Common Sense Plan by Dave Ramsey

(The following is Step 2 of Dave Ramsey's "3 Steps To Change The Nation Future". Step 1 is prayer for our leaders. Step 2 includes sending this plan to Congress. Step 3 is to send this plan to others.)

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 three steps:

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.

(Further explanation and usage of the above plan can be found at Dave Ramsey's website.)

A Simple Financial Solution

Everyone seems to be talking about the economy now. Even people that normally "dislike" Economics, etc. seem to be interested in the trend of the Dow Jones, etc. Furthermore, with Congress screaming "Armageddon!", it seems as if the world is about to end. But is it really? Such corrections in the market have occurred before (Dot Com bubble burst, Black Thursday, etc.) and the U.S. and the economy survived. Even the Great Depression was not the end (though through the U.S. government it was prolonged). Now understand, I am not happy about what is happening, but much of it is contrived. Much of the problem has come about from greed and improper government interference. In fact, many of the people who caused the problem are the SAME ones trying to "fix" the problem. Now that's scary! Unless, of course, you enjoy living in the United Socialist America.

What can be done to fix the situation? Well, actually there are several solutions. One of the easier and actually "common sensical" solutions would be to remove the Mark-to-Market accounting (a.k.a., Fair Value accounting) requirement and allow the companies to actually free up capital thus improving the liquidity status. Here are some definitions of the Mark-to-Market accounting process:

1. The act of recording the price or value of a security, portfolio or account to reflect its current market value rather than its book value. This is done most often in futures accounts to make sure that margin requirements are being met. If the current market value causes the margin account to fall below its required level, the trader will be faced with a margin call. (WSJ)
2. In terms of mutual funds, a MTM is when the net asset value (NAV) of the fund is valued upon the most current market values. Mutual Funds are marked to market on a daily basis at the market close so that investors have an idea of the fund's NAV. (WSJ)

Furthermore, such accounting methods have consistently led to fraud in the financial arena. (Like we need more of that!)

For more information, check out Forbes.