You Want Free Market Solutions? You Got 'Em!

There are BIGGER COWBOYS all around the world my dear and they are working together - paulson just being one of them...THIS IS free market .... FREE FOR ALL and UP FOR GRABS.

The more I know...the more I don't want to know. It really starts to make you feel a little helpless because while most of us understand the concepts that you are putting out...some do not and are perfectly happy to follow their "leaders." When the majority of the people become complacent or...prefer to stay uninformed...you end up with a few crooks running the country. WAKE UP PEOPLE! This is our country. Cody...I used to watch CNBC until I could not take their slant in favor of their friends on Wall Street any longer. I started watching Fox in the mornings and they started talking about Fox Business Channel. I was not aware it existed. I have to tell you...I am happy to have found the network and you. You are a breath of fresh air and state the facts more clearly and concisely then anybody I've heard thus far. Keep up the good work! We love your passion.

I wish we were protected from domestic enemies... I'm not joking...

Great Post, very thought provking!

Cody, you make WAY too much sense to be in this job. How did you get past their sensors? I'd like to get in on that deal, too. Sign me up!

Why not just take these "toxic" subprime and 5 yr arms and allow them to refi to a 40 or 50yr mortgage (heck 80 yr, if it needs to happen...Japan & others do these long term mortgages)? Also, tighten up on the foreclosure laws and make it harder for people to just "walk away"? This allows the following things to happen: 1. Keeps the payment affordable, and buys the homeowner alot of time to sell if they don't want to have a 40/50yr mortgage. 2. Does not shift the burden from the irresponsible buyers to the taxpayers. 3. Changes the status of these "toxic assets" to more of a solid asset status. 4. Provides instant stability to the markets. Banks won't have to beg mom and pop out of their money to back the "toxic assest" because they will not be toxic anymore. 5. Provides a good lesson and to reinforce the idea that we, as individuals, are responsible for our own actions. Most of these people bought because they could "afford" the monthly payment, without thinking (or thinking thoroughly enough) of the consequences of when the mortgage "resets". Basically, re-adjust the mortgage so they can afford the payment, but do not forgive the debt. Is this idea too simple as well as stupid? p.s. Cody, as always your brilliant and honest. I appreciate your views because there are too many "brilliant" people who lack that other character: Honesty. Keep up the good work, you articles are refreshing and will only lend itself to you having more credibility. p.s.s. This also allows a good lesson for people who essentially bought what they cannot afford. Hopefully, they have new found wisdom that they can pass down to their kids from generation to generation. Remember, even if the government created laws that allowed for these high risk portfolios to be created, nobody holds a gun to your head and says that you have to buy a 400K mgt on a 75K salary. p.s.s.s. Also, add Dave Ramsey's program as a mandatory class in high school and then college (for a good reinforcement). Dave, if this happens, I would like a sales commission check from you personally......just kidding. I bet this would change the status of the US being in the negative savings catagory. p.s.s.s.s. Of course, govt.....do your part......read the Constitution and actually follow it.

McCain supports the bailout, but he shouldn't talk about it on Fox News because it makes me think back to "The Keating 5" of the not too long ago S&L Crisis when he tried to interfere with a Justice Department probe of Keating.

I have been trying to blast emails to the house of rep to get an email threw it is down apparently they are now going to turn a deaf ear to all of us also I have stated if it passes that on monday no one goes to work and we put signs in the yard hell no we won't pay. sit at home people and don't go to work nation wide walk out if it passes the house. let them collect 0 for pay roll taxs nation wide until it is stopped.

Just started watching Fox Business News a couple of weeks ago to follow the Paulson Plan. It seems like you and Jonathan(CapitalistPig.com) are the only ones really questioning this whole ordeal. My conclusion is that we should let the insolvent firms fail without government intervention and allow the bankruptcy system handle it. After that, I'd like to see the Federal Reserve System ended and a restoration of sound money. I want the government to do less, much less. Also, I use the same words to describe the antics of the Administration - economic terrorism, extortion, blackmail, coercion. Thanks for the post, Cody.

The mark-to-market would be a temporary suspension to quell the panic and only for mortgage-backed securities as I understand it. But the politicos just don't get it. The problem is the bailout of crooks. The crooks don't want to the free market to sort it out because they can get a better deal from the government (they wrote the bill). That this sh&t hits the fan right before an election is shameless.

Subprime leadership plus Subprime loans plus Subprime legislation equals Subprime Country ie United Banana Republics of America.I was going to say that I hope the average American would wake up and educate themselves,but I won,t because giving up watching 6 hours of sports per day would be too great a sacrifice to ask.

The dire warnings, of the end of the world sort, that are being used to ram thru some kind of bailout bill remind me a lot of The Ticks' Argument. In case you're not familiar with it: Dog: "Mr. Tick, why do you have your head buried in my flesh?" Tick: "I'm saving your life." Dog: "I don't understand. Please explain." Tick: "By sucking your blood, I'm encouraging your system to make fresh blood thereby maintaining good health." Dog: "Oh, ok. Thanks." Well this dog ain't buyin' it. Time to scratch.

Passing the current this legislation is nothing but a reward for those entering into poor business decisions. "Greed" and "Living beyond ones means" come to mind when I look at this mess. Why penalize those who made the correct decisions,i.e. put down a downpayment on a house or a lender doing prudent research. Let the market sort it out. I just hope the voter remembers who votes for this garbage and vote them out November 4th.

If this gets passed i am going to quit working in the USA I will not let them have my tax dollars for some fat cat to have his cavair and laugh about how stupid our politicians are. I suggested to friends have been to walk away from your jobs nation wide. lets see what happens when they can not collect pay roll taxes for a week or so bet they change their tune real quick. I guess the hill and wall street have not got the message to drop this now. Keep the pressure on. I have emailed my senators and told them to not support any bail out of wall street. If they try in the house I wlll send emails to them again as well. I have basically state to them if the vote yes I will vote for some one else on election day. Cody keep up the good work thumbs up

Great stuff! Good ideas that I hope congress and the people they represent can come together and agree on.

Suspending FASB rule 157 is a terrible idea. This rule provides transparency concerning an asset's current value and keeps corporations from valuing assets as they see fit. See the problem here? Don't ya think companies wouldn't love to buff up their balance sheets by 'valuing' their assets other than what they can get someone to pay for it? A now painfully obvious fact: when no one wants to buy your 'mortgage-backed securitites', they are WORTHLESS! So, my advice to Wall Street and the banks: man-up to your mistakes, fire your risk-management team, write off your loss and tell your lobbyists to quit whining to Paulson and Bernacke! If you don't want to loan me any more money, fine, I owe you all way too much anyway... FASB 157( like the now-defunct Glass-Steagall Act ) was created for another painfully obvious fact: companies can not be trusted to always 'do the right thing'.

Please run for president. Please?

Wouldn't now be the right time for the House Republicans to incorporate some of these (yours and others) suggestions into the Freddie/Fannie reforms they tried to pass in '05 '07 (NO pork added) ? That might get quite a bit of interest/support from the American public. The onus would then be on Pelosi and Co to shoot that down which might bite them where they sit.....

I think most in Washington just like to be busy-bodies and meddle. I am so d*mn sick of it. What would they do otherwise? I think your pooling idea is smart and a market solution, which is they way it should be. Rock on, Cody!