Any financial institution requiring funds from the government will:
1. Voluntarily place all C-Level execs under house arrest until the company is out of trouble.
2. All assets from failed loans are sold at auction, with the starting bid being 25 Cents on the dollar. ( The government buying what ever does not sell. )
3. Capital gains for selling any property at the auction is not taxable.
4. Executive of failed financial institutions donate half their net worth to housing projects.
So, should I add remove or change anything?
Originally posted 2009-04-05 23:38:56.
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{ 6 comments… read them below or add one }
ugh. I don’t see a solution there.
It’s sickening that the CEO’s are walking away with millions.
Our economy is in this mess because people are so greedy.
That sounds great and pretty smart. you are very confusing but i understand part of it.
I have a much better idea.
1) Remove the Golden Parachutes for ALL CEO’s who have presided over a failed bank or insurance company for 2 years or more. No severance pay: Zero.
2) Bail the company out and give taxpayers a 10% stake in future holdings.
3) Re-institute the regulations that our last wonderful president; Bill Clinton had in place. (Remember the 90’s?)
4) Government take over bad mortgages and set reasonable, affordable payments allowing homeowners to stay in and pay for their homes thus bringing the mortgage crisis to a grinding halt.
If they would do these things, the financial crisis would disappear in a few months and we would be on the road to the fundamentals of our economy TRULY being strong again, not just in Sen. McCain’s head!
I don’t like your plan at all because…
1) Corp. level execs can legally cost the govt. tons of money in legal fees and still get off scott free. If this action was voluntary, not one company would volunteer to do it anyway.
2) The govt., under your plan, would end up with only the most toxic and worthless loans–a huge loss and no chance of profit for the taxpayers. The same co.s that got us into this mess would pick up the loans with a chance of future profit at pennies on the dollar and make out like the bandits they are.
3) Erasing capital gains taxes on property sold at auction would be a giant monetary gift to the very same greedy Wall Street profiteers that created this problem.
4) The majority of the executive’s net worth is either not in their name, in foreign banks/offshore accounts, or protected from the legal system in other ways ergo inaccessible.
You are blaming everything on executives and I do not understand why.
The fundamental problem is that people bought houses they could not possibly afford. This is partially the fault of those who lent them the money to buy those houses (which they should not have done) as well, but I do not see the connection to CEOs.
On top of this, you say that all assets of failed loans should be sold at auction? This sounds an awful lot like the bail out…
I am curious where you came up with the 25 cents on the dollar number. I am guessing you made it up out of no where since no one actually knows how much these things are worth. That’s the point of the auction, to find out how much they are worth.
Executive of failed financial institutions donate half their net worth to housing projects. Sorry, I’m not a socialist so I can’t agree with this. Capitalism all the way, folks!
My idea is make everything free, and then we can never be in debt.
The end.