In this present crisis, government is not the solution to our problem; government is the problem.
1. Eliminate ALL capital gains taxes and taxes on savings and dividends right now. Free up the capital and encourage investment. This is the kind of economic stimulus the Fair Tax would bring and if Congress is going to lose money, let them lose it with lower taxes, not with public dollar bailouts of private market mistakes.
2. Repeal Sarbanes/Oxley. It has failed. It was supposed to prevent this. It didn’t. Kill it.
3. Demand that the executives who steered their ships into the ground be forced to pay back the losses of their companies. Of course, they can’t, so let them work and give back to the government and they can live like the people they put on the streets or kept there. It makes no sense to put them in jail—that’s just more they will cost you and me. I’d rather them go out and earn money—just not get to keep so much of it this time. I’m not talking about limiting CEO salaries—just those of the people who now are up in Washington begging for help because they ruined their companies.
I think, first of all, they should replace the current snapshot to market with a rolling three-year average.
I think, second, they should change the current loan reserve pattern so it’s not pro-cyclical.
I think, third, they should zero capital gains.
I think, fourth, they need to adopt an energy plan to keep about $500 billion a year here at home instead of going overseas.
But on a practical level, if they need to open up a window to loan money to treasury plus 2 percent, and people want to come in and borrow the money and the responsibility (ph) of a workout not a bailout, and those people want to work their way out over the next three to five years. I’m comfortable saying this is a liquidity crisis; let’s meet it; let’s loan the money. But let’s make sure they are responsible for their bad debt, and they’re going to work their way out.
This idea that we’re going to buy the paper and some bureaucrat in Washington is going to be responsible for $700 billion in bad paper, I think, is socialism at its worst. I can’t imagine why this administration is doing it. I think it is profoundly wrong, and I hope it is defeated if it comes to the floor in this form.