Comments on: We need solutions, not soundbytes…

By: Chris Hutcherson

Chris Hutcherson — Thu, 02 Oct 2008 17:23:58 +0000

How long will it be before more money is required, Is this just a short term fix ?

By: angiegoff

angiegoff — Wed, 01 Oct 2008 13:15:29 +0000

I’m just so happy you’re blogging!! YEAH!

You know I can’t comment on politics! But I’m proud of you!

By: Adakin Valorem

Adakin Valorem — Wed, 01 Oct 2008 12:51:31 +0000

Why not solve the ENTIRE problem with two words:

FairTax

HR-25/S-1025 would take politics out of revenue generation and allow people to choose when they pay for the government that they want.

By: loulou

loulou — Wed, 01 Oct 2008 10:38:25 +0000

Let them fail. Then everyone feels the same pinch that most of us have been feeling for a while anyway.
You know, businesses have been having problems with credit for a while. Most of them have adjusted.
I personally don’t like socialism.

By: Earl Capps

Earl Capps — Wed, 01 Oct 2008 06:33:11 +0000

Hey Adam – did you put that up on your MySpace page?

By: Rich Danker

Rich Danker — Tue, 30 Sep 2008 22:16:26 +0000

I agree in general with the way forward that Adam and chief executive John Allison have outlined. Regardless of what the government will do with investment banks’ bad assets in the short-term, the long-run solution to healthier capital markets is clearly to repeal Sarbanes-Oxley and make the capital gains rate zero. This will make it easier to public companies to operate efficiently and for new business investment to be unlocked.

President Bush can do several things immediately that don’t require congressional approval to fix this crisis, including indexing capital gains to inflation (which would remove trillions in tax liabilities off the backs of homeowners and stockholders) and instructing the SEC to make fair-value accounting optional (which would let them value their distressed assets at cost rather than market price).

There clearly was no support for a $700 billion government purchase program outside of Wall Street and the establishment in Washington. Congressional leaders to go back to the drawing board and come up with something that more accurately mirrors the electorate’s willingness to assist Wall Street.

By: Bill A

Bill A — Tue, 30 Sep 2008 21:27:12 +0000

“Increase FDIC Insured deposits to $250,000.” -> More quickly depletes the limited reserves the FDIC.

“Suspend Mark to Market…” -> Stops prices from correlating with value; allows someone with a worthless asset to pretend it’s worth something. Distorts institution reserve ratios, allowing bad institutions to remain propped up for a little bit longer. Delays the correction a few years until that average catches up.

“Repeal Sarbanes-Oxley.” -> Agree.

“Repeal capital gains tax…” -> Intensifies federal deficit.

“Fund the bailout with tax shelter blah blah…” -> These assets are illiquid because they are worthless. People are walking away from their upside-down homes, and foreclosure doesn’t make money until you find a buyer. “Experts” who say the government could make money off them are fools or liars. Having a free tax window on an asset that is a surefire loser doesn’t help.

“Tax credit for home purchase…” -> Deficit. Inflation. Trying to cure the symptom while ignoring the problem.

There is a natural relationship between the rate of savings and the price of credit… except in our country where we save nothing and borrow everything. Such a system is unsustainable and will continue to be rattled by panics. No bailout in any form could ever fix that, only an ajustment to behavior and standard of living, from the fedral government all the way down to the individual level, that brings it in line with productivity.

I have a briefcase!