Tuesday, September 30, 2008


Maybe some of you have a better understanding than I do and can help me out.
First of all, I'm not worried or even anxious, I just want to know what is practical.  I believe God is in control of all things and I trust Him.  He never promised everything would be good or easy, but He promised to be with us and see us through.  So, I'm cool with that.

I read an article today where the guy was insisting that this crash is nothing like the crash in 29 that caused the Great Depression.  What I'm wondering is if that guy is an idiot or not.  He says that during the depression thousands of banks failed, people lost their life savings, employment rates were dismal and people were living in tent towns.  Well... yeah.  But did all of that happen the same day the market crashed?  And if these major banks keep failing, isn't it probable that thousands of smaller banks will, too?  Thus, people will lose their savings and on and on?

Already the BBC is reporting the effects on the European and Asian markets.  Things could right themselves, though, couldn't they?  Or not?

I'm not trying to be dismal or pessimistic, I just want to understand what is wise for me today.  I don't want to walk around with my head in the clouds and fall into a pit.  I'm trying to be realistic and wise.   Should I continue living as I have been, spending money the same way and therefore contributing to the economy?  Or should I cut back now, saving money for the day that we might really need it?  My husband works for the cable company doing computer stuff.  If the economy gets worse, cable is going to be one of the first things people cut.  How long will he be secure in his job?  So what do you guys think about all this?  Is there cause for any concern?  Should we just go on as we have been?  Or should we all cut back and start making due now?  

By the way, I want to say that for us to keep on as we have been means a cash only system.  We don't do any credit.  I very much believe that people should stop buying on credit.  I think that will just compound the mess, myself.  

We took a small loss in the crash yesterday.  The kids' college funds are the only thing we have and they fell.  I'm actually glad we don't have a lot of money to worry about losing!

I also want to point out that I am not in favor of the bail out.  I think it would help, but only temporarily and in the long run, just make the problem worse.  The government is already trillions of dollars in debt.  How does that work??

Admittedly I am very naive and uneducated in these matters.  So I am asking for your intelligent opinions.


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  2. I am in the same boat. Listening trying to separate the politics from truth. My family is not spending as much. We are not living on credit and usually get enough cash out to live on. I do better with cash than debit cards. I can "see" my monies. I don't have anything in the market. I could pull out all my monies out of the bank and put it under my mattress..but that seems illogical and really not helpful. I don't have enough that would really help us for a long time.

    For some reason...I am concerned that more people are not more concerned.

    I think you bring up some great points. I am not in favor of this bailout at all.

    I will be coming back to see if anyone posts something helpful. :)

  3. I am not in favor of the bailout either. Congressman Mike Pence phoned into Hannity and Colmes (on Fox) last night and suggested that Wall Street could help bail itself out with some reconfiguring (not sure what they would reconfigure because I know nothing about Wall Street). That sounds like a better idea to me. At least make them work for it.

    I've been praying a lot lately about our finances and for wisdom to spend and save the way we should. Between rising food and gas prices and the possible tax increase we can expect due to the bailout, it looks pretty grim. I'm concerned, but like you, I know that God is in control of everything and that He will see us through this.

    - Jo

  4. I'm assuming this is what you wanted my thoughts on...

    I just had a similar conversation with a friend last night. I think the blame goes all around. There's predatory folks taking advantage of people who think they need bigger and better, the media telling us we need bigger and better, and ourselves... who can't seem to find contentment in what we have.

    I do want to add, though... don't worry too much about the college fund. I may be wrong on this, but I've chatted with my financial advisor on it (our IRAs are also tanking big time), and he reminded me to think more in terms of dollar cost averaging. Long term, when things do pick up, so will the value of our accounts.

  5. I was about to fund an IRA and I am holding off on that for now. Our 401K has taken a hit but I am convinced it will recover. God is in control and he will sustain us. It may be uncomfortable at times but it will work out.

  6. I agree with Danica - I had a conversation also with someone who really gets all this financial stuff and she told me that the blame isn't in any one place that we all hold responsibility. We as Americans decide we "need" or deserve bigger and better houses, cars, etc... and buy more than we can afford or take out home equity loans which cause us financial hardship. It doesn't stop there though because the mortgage companies and banks are taking on risks they shouldn't when they can tell on paper that this person can't really afford this loan. Then the real estate folks should refuse to sell to people who don't have the income to cover it, but they do because they get great commissions of those house sells that people can't afford. Then you have bankrupcy, etc... Living on credit is a bad idea because we just get what we want when we want it and never save or work towards a goal... Just a big vicious cycle.

  7. Serious advice...vote for McCain and Palin, so when it all does come crashing down, the neo-cons can be rightfully blamed for the mess Bush HELPED create. I would rather see McCain go down hard along with his nymphet running partner and take the blows the Bush Doctrine helped bring about than see an intelligent, moral man like Obama be sullied with the Bush Administration's grievous mistakes and an illegal war. So, vote Republican this Election Day! So in four years American voters can awaken from their self-absorbed delusions and fix our beloved nation. Lord, have mercy on us!

  8. And I didn't even know what happened until yesterday when the news guy said something about the record setting low from the day before. I don't know if he called it a crash or not. We try to stay below our means. I don't think people should go and yank all of their money out of banks, but I think it might be wise to invest in a home safe of some kind, and just not put all of your cash into the banks. Keep an amount on hand. I don't know, I just do know that people arn't huge corporations, and we might not get the same bail out help if things really do crash. So it might be nice to prepare ourselves for the just in case.

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  10. Well I must admit I love the politics of it all and watching all the different opinions. If I could make it a full time job it would be a dream come true, however....

    While I love talking and watching politics, what I have been convicted of lately is we are focused too much on the blame and finding a solution. Perhaps God Almighty in His sovereign grace is trying to get our attention.

    Let's review....

    2000 - Droughts/Fires, $6.3B, 140 deaths didn't do it.
    2001 - 9/11, Tropical Storms, Tornadoes/storms many billions in $ cost, 4,000+ deaths didn't do it.
    2002 - droughts/fires, $21B, 21 deaths didn't do it.
    2003 - hurricanes, storms, fires, $12.2B, 138 deaths didn't do it.
    2004 - 4 hurricanes, $56N, 170+ deaths didn't do it.
    2005 - 3 hurricanes, drought, $111B, 1500+ deaths didn't do it.
    fast forward 2008
    multiple hurricanes, fires, droughts, flooding, financial crash, $costs in the trillions - hasn't done it yet.

    What we need is a call to revival in the church! Instead we waste money, time and other resources fighting political battles when we should be on our knees seeking the face of God, repenting for our wicked ways and asking for His strength to carry His message to the world.

    God's heart is breaking and I believe he is trying to get our attention, but no one seems to be listening!

  11. Amen, Bro! Our churches are saddly letting our nation down in far too many ways: caring for the poor, providing proper sound theological training for our youth, and instructing Christian parents to raise their children according to God's way and not the world's ways. It is indeed time for a revival, a true awakening in American churches! Please make it so, Lord Jesus!

  12. The main difference between the present and 1929 is the percentage of value drop.

    It's not even close. Let's say Wall Street drops 1000 points tomorrow. It would be the biggest point drop in history, but not the biggest value drop.

    1000 of 12000 is 9%.

    In those three days in 1929, the market lost apprx 130 points, but that accounted for 40% of its value. The equivalent of a 5200 point drop today.

    Also, back then, there weren't many "buyers". And they were all in the same Country club. Today, millions upon millions of people are "buying" into the stock market-especially when it drops.

    I don't think we can use compartive analysis between the two periods to spot trends or make predictions. The world has changed too much.

  13. Thanks, Dayle.
    The percentage thing did occur to me later as I was contemplating.
    Now I guess that since the bailout passed we have a little more time. I hope people will change some of their habits, now though.


I love to hear your thoughts!