Well, it appears that the Senate has passed the “new and improved” economic bill tonight, designed to funnel $700 billion dollars to improve liquidity and the credit market. Among other pork this piece of crap has, money to arrow producers, money to help mental health patients, and money to study wool. So here is my question, if this is such a dire emergency, why the hell are these Senators not treating it like one?

I understand something has to be done, but I just don’t think this is it. There is real doubt as to whether this $700 billion will actually do anything to help the underlying problem. The Treasury Department has essentially admitted they pulled this $700 billion dollar amount out of their arses because it seemed like a big number. Yeah, this is not based on fact or deep study, but it is essentially a psy ops mission.

So, what would help the credit markets? I support Dave Ramsey’s approach (that guy forgot more about finances then I ever knew). First, make the mark to market accounting rule permanent. This will give real assets some value, as opposed to no value, which will then allow banks to float more money in borrowing and lending. Second, suspend the capital gains tax rate to 0. This would immediately pump billions if not trillions of dollars into the economy. Third, insure all sub-prime bonds with an FHA type of insurance so that these so called toxic assets will be taken care of.

These three things would do more to solve the underlying problem that we currently face. Will throwing $700 billion at the problem help? Yes, it might. However, it might do nothing. The real question here is, will the House GOP who voted against the original bill on Monday vote for this bloated piece of crap? I hope not.