Financial Crisis
After listening to NPR last night, we were left with the feeling that the US is about to fall into the ocean. This morning, I received an email from a Christian financial institution that holds our retirement account through GEM (Envoy Financial) and was very encouraged by the words it contained. I thought you might benefit from reading it as well.
“Since first thing Monday morning, the news has been dominated by the failure of Lehman Brothers, the Merrill Lynch acquisition and the status of AIG. Depending on what you read or hear in the news, our financial system is on the brink of failure and our leaders are deciding which organizations to bail out and which to let fail. Words like “catastrophic,” “perilous,” and “historic” are being thrown around to describe the situation. But, if you listen to financial advisors instead of news commentators, the message is quite different:
Relax. Breathe. Stay the course. Our economy is actually showing signs of recovery. The sky is not falling!
What we are seeing is more fruit of the sub-prime mortgage and housing crisis as it works its way through the financial industry. And while it may be surprising to see some of the big names being affected at this time, our financial system is not failing.
For individual investors, now is not the time to sell and get out of the market. If what we are seeing can be described as a “fire,” then the markets are now holding a huge “fire sale.” Everything is on sale! Now is the time to keep investing because you’re getting more value for your contribution than a month ago. If anything, now is a time to increase contributions to take advantage of the discounted prices. When the market recovers, you’ll have more that recovers with it. You’ll reap the rewards for remaining patient and disciplined in your investing.”
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FYI: This is the president’s address. Maybe it can help you understand better what is going on.
http://www.signonsandiego.com/news/nation/20080924-1859-bush-text.html
It seems like the ones affected are the “big investors” not so much us “little guys” as least for the moment.
Of course, it seems like the world works on an entittlement theory and tends to get into debt through credit and then expects a bail out when things don’t work as expected. I was in debt once and told myself never again! Even if it means going without.
It will be interesting to see how things develop..pan out. The Lord knows and all things are done for His glory even with the election coming up..I would be more currious to know the european view of what is happening to us. Are they happy?