Sunday, October 12, 2008

It's the Economy, Stupid

Continuing to share my stand on the issues as I run for President, and I'm da bomb-a like Obama cuz I blog about it. Once again, a reprint of a post from elsewhere, with a few added nuggets of "wisdom." So you don't feel slighted, a quick sketch of Taskmaster, one of my all-time favorite villains.

The stock market is a gamble - it's people taking their money, dumping it into large companies (with no say in their operations) and hoping to turn it into a landfall.

The housing issue, which has caused the most damage to the stock market recently, is a direct result of a very poor mindset of greed and entitlement that Americans have. Buy furniture we can't afford, buy a house we can't afford, buy a wide screen plasma TV we can't afford, and figure how how, or IF, to pay for it later on. Banks catered to this greed by providing (IMO) criminal opportunities to borrow including ARM's. Retailers provide a new credit card with a $5000 credit limit at the checkout counter - the CASHIER approves it!!! And when it all goes bad, they turn to bankruptcy as the way out - something that used to rightfully carry shame but has almost become a right of passage.

Should we be surprised about the housing market when waitresses are buying up real estate in order to "flip it" for a profit? That's not the American dream. That's greed. Should we feel bad for a couple who gets evicted from their apartment because they're four months behind in the rent, and we watch them move out two computers, a Wii, a PS3, a monster TV and a stack of DVD's that could choke Godzilla? That's not the American dream, that's irresponsibility. It's a poisonous victem mentality.

The problem is that we as Americans are fat and lazy and live too well. We're told on one hand to live by our means, and the next second we're offered "no money down and no payments until 2010."

That's got to end, in the form of responsibility laws. In my plan, Adjustable Rate Mortgages would be outlawed and credit card interest would be capped at 15%. Each individual or family would be able to have a legal debt-to-income & asset ratio (on a sliding scale based on their income and credit rating) that would not exceed their ability to pay off. Once they have that max reached in credit cards and car payments, they're cut off - no more credit issued. Just like a drunk at a bar. Anyone exceeding their limit would be guilty of bank fraud and subject to penalties and prosecution. Any creditor knowingly issuing credit beyond the ratio is also subject to penalty. And as long as my healthcare plan goes through, there would not be a problem with unpaid medical bills (thus eliminating the unfortunate circumstances that might create a credit issue beyond one's control).

It would mean people would buy less - for a time. Believe it or not this is a good thing - it would drive down prices and put a vast number of Americans on a path to debt recovery. We have too much stuff anyway. But my plan also calls for the elimination of income tax on interest and dividend income for a family earning $125,000 or less - encouraging saving. Ain't that a novel idea?

Tune in next time for "It's Still the Economy Stupid" as we start to transition toward foreign policy. Ain't I a little smarty pants? Oh, if anyone has a request for a sketch I'll try to accomodate and post that too.

1 comment:

sacred vapor said...

how 'bout Dr.Doom for the next Economy post? (no pun intended).

Hey, I would vote for you.