When the government interferes with the sanctity of contracts, it scares future lenders and causes them to raise all interest rates, even to good borrowers. The responsible borrowers–those who have saved up before buying, will be penalized.
Cramdowns, bankruptcy judges forcing lower mortgage balances or interest rates, foreclosure holidays or delays, refusal by local authorities to enforce foreclosures–all these and other feel-good government actions are the mark of a banana republic that does not respect the rule of law.
For decades the US has had the world’s best and most efficient and respected mortgage market, attracting the world’s money. Now it is endangered by populist measures that will haunt us far into the future. Investors, foreign and domestic, will flee our shores, or stay and charge the appropriate risk premium.
Beware of the results when you move from the rule of law to the rule of men in this way.
I like Dave Ramsey even if it is personal finance 101. Too bad more Americans don’t get his message.
As far as his plan, eliminating capital gains does cost tax payers. All of us on the side line getting shit interest rates on our several hundred thousand dollars (thanks Greenspan) will not be paying income tax (33%) when we move our investments to non taxed accounts. But, I would still take his plan over the $700B plan.
EconProf, you are right on. Probably the #1 reason the bail out is a bad idea. Why is this missing in the headlines?
I like Dave Ramsey even if it is personal finance 101. Too bad more Americans don’t get his message.
As far as his plan, eliminating capital gains does cost tax payers. All of us on the side line getting shit interest rates on our several hundred thousand dollars (thanks Greenspan) will not be paying income tax (33%) when we move our investments to non taxed accounts. But, I would still take his plan over the $700B plan.
EconProf, you are right on. Probably the #1 reason the bail out is a bad idea. Why is this missing in the headlines?
I like Dave Ramsey even if it is personal finance 101. Too bad more Americans don’t get his message.
As far as his plan, eliminating capital gains does cost tax payers. All of us on the side line getting shit interest rates on our several hundred thousand dollars (thanks Greenspan) will not be paying income tax (33%) when we move our investments to non taxed accounts. But, I would still take his plan over the $700B plan.
EconProf, you are right on. Probably the #1 reason the bail out is a bad idea. Why is this missing in the headlines?
I like Dave Ramsey even if it is personal finance 101. Too bad more Americans don’t get his message.
As far as his plan, eliminating capital gains does cost tax payers. All of us on the side line getting shit interest rates on our several hundred thousand dollars (thanks Greenspan) will not be paying income tax (33%) when we move our investments to non taxed accounts. But, I would still take his plan over the $700B plan.
EconProf, you are right on. Probably the #1 reason the bail out is a bad idea. Why is this missing in the headlines?
I like Dave Ramsey even if it is personal finance 101. Too bad more Americans don’t get his message.
As far as his plan, eliminating capital gains does cost tax payers. All of us on the side line getting shit interest rates on our several hundred thousand dollars (thanks Greenspan) will not be paying income tax (33%) when we move our investments to non taxed accounts. But, I would still take his plan over the $700B plan.
EconProf, you are right on. Probably the #1 reason the bail out is a bad idea. Why is this missing in the headlines?
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