Ken Montville -- the MD Suburbs of DC

I'm kind of a big fan of Dave Ramsey because he's about getting out of debt and staying out of debt. It's amazing what kind of freedom and stress relief not having the wolf at the door provides. Anyway, he has this "Common Sense Fix" which you can read (it's a quick one pager!) you can read here -- The Common Sense Fix

If you're on Facebook you can see Dave Ramsey's Three Steps to Change the Nation's Future

If you're just surfing the web, you can read it ...Here

Maybe someone can tell me what's wrong (or right) with this approach.

I've been thinking about this whole, big mess with the big Wall Street firms and how they say the credit markets are seized up and all. It reminds me of a car wreck on the infamous Washington Beltway. I would be driving down the road (with thousands of other motorists) and there would be a wreck on the other side of the Beltway. It might be a small, fender-bender or a full-fledged blood and guts Med Evac helicopter type wreck. Doesn't matter. People slow down and "rubber neck". But, in the end, they pick up speed and keep on going.

I guess there is some sort of macabre interest in other people's misfortune that causes us to slow down and look. It's kind of the same thing on Wall Street. Here are these big banker types who were supposed to be soooo smart and sophisticated and now they really screwed up. But, for me, it doesn't matter that much. Why? I planned ahead a little and have enough money to cover my mortgage and my other living expenses. About a year ago, my wife and I made a conscious decision to get out of debt and stay out of debt which meant no car payments and no credit card payments.

I also have a few years to go before I "retire" (whatever that is?) so I know that the stock market will come roaring back. It always has and if the Government doesn't figure out a way to hand off a lot of my tax dollars to the Wall Street fat cats, I'm sure the Wall Streeters will figure out another way. You see, this is just the easiest way out for them. They screwed up and now they want Big Brother to come to the rescue. Never mind they wanted Big Brother to stay the heck out of the way while the money was rolling in.

But just like a real parent (or Big Brother) who administers some "tough love" if the Government just holds their ground and continues to remember there's an election coming up, I'm sure the "private sector" (somewhat of an oxymoron nowadays) will figure it out.

I'm not convinced it's the end of the world or that the sky is falling. It's more like a car wreck. Bad? Yes. Unfortunate? Yes. Uncomfortbale consequences? Yes.

But we''ll get through it.

Here it is, Saturday evening and the economy is still going. Maybe not as strong as it used to but things are still happening. Of course, it's not Monday, yet, so maybe the economy is getting ready to collapse as soon as the markets open on Monday.

Here's something I've been thinking about, though.

Remember the Administration (Treasury Secretary,Fed Chair, President) were all saying this bailout thing ($700,000,000,000) has to happen now! Not later! Now! It didn't happen overnight and, wow, nothing bad happened. In fact, the Dow Jones Industrial Average and the S & P Index went up and down just like they've bee going up and down for months, if not years. Yeah, it's volatile but it's been that way for a long time.

I think it really had more to do with the election. Congress (i.e., the House of Representatives) is completely up for re-election. All 435 of them and 1/3 of the Senate has to think about keeping their cush condos in DC and they don't want to be kept in Washington working out the details of what seems to be something terribly complex.

The big financial interests need money, want money and don't want to wait until a Democratically controlled Congress (both the House and Senate) comes into power in January and may not be quite as sympathetic to their cause.

Meanwhile, the mortgage industry is in a little bit of a tight spot but, guess what, if you have a good credit score, a good (verifiable) job and money to make a down payment you can get a loan.

So here's the deal, Mr. and Ms. Elected Official Stop trying to cobble together a fast bailout that won't do anyone any good and go on and do your campaigning. Then, when you come back, if "Wall Street" still needs your help, come up with something that won't vaporize our hard earned life savings.

Take a deep breath. Let capitalism and the free market work like it's supposed to.

Is it just me or has the world gone crazy? I haven't seen this type of paralysis in the market since 9/11/01 and that was when some wackos flew a few planes into some buildings scaring the bejeezus out of everyone. Now it seems that the "all bad news, all the time" cable and regular network shows have everyone standing around like deer in the headlights.

Here is an article n today's business section in The Washington Post about potential home buyers and why, all of a sudden, they aren't doing jack.

Here's a big alert, everybody, there are Sellers out there that have equity in their home and want to sell their home. No short sales that might mean months of waiting while a bank decides that they may or may not accept your offer. No "fixer uppers' "as is" homes with wet basements and broken windows. I'm talking about regular homes with people that want to:

1. downsize because the kids have grown and moved out
2. downsize because of retirement
3. move because of a job relocation
4. move because of a divorce
5. move because of illness and they're moving in with their kids
6. move because they want to live in a warmer climate like North Caroline or Arizona
7. move because they don't want to walk up and down stairs or mow the lawn or deal with the plumber

These folks will more than likely pay for all your closing costs. If you're military or family of military you probably qualify for a VA loan which means 100% financing and zero out-of-pocket expense to move into a nice house. If you live in Maryland there is a great State sponsored program called CDA (for first time home buyers) that will provide you with 100% financing and a 3% grant to help with your closing costs.

So, are you going to wait until the interest rates go into double digits and you really won't be able to afford a house? Or do you think you might want to take advantage of the biggest and best buyer's market in memory?

It's hard to think of one Depression being "greater" than another but if you think of "greater" in terms of "more than" the last "Great"Depression we may be in for a hell of a ride. In this morning's edition of The Washington Post there is this article entitled: Markets in Dissarry as Lending Locks Up.

I don't know about you but when I see words like "...Lending Locks Up" I get worried about all those people out there who are trying to get a mortgage. I understand that FHA and VA are backed by the government through insurance or outright guarantee. I wonder, though, how much that is going to mean, going forward, if good ol' Uncle Sam continues down the path of nationalizing the financial services industry.

I know this can't be good for the American taxpayer and if we keep borrowing money from the Chinese and other offshore sources they won't need to invade our country or fly planes into our buildings. They'll just walk in and take over the economy.