Understanding the Financial Mess Everyone is Talking About
Thursday, September 25th, 2008 : By Dan Miller
Have you found yourself confused at the water cooler or in the lunch room because you do not understanding what exactly is the “financial crisis” we are facing as a nation?
If you are like me you simply don’t have time to pull all the sound-bytes together to have a clear picture of the magnitude or the terminology involved. So, how about a quick primer? The following article will help bring this issue into focus for you.
About The Author
I have been married to an amazing wife, Vicki, since 1992 and together we enjoy pouring into our six kids the greatness of our God. My favorite food is Italian. I enjoy playing 80’s metal riffs on my guitar. I love all the major sports (except soccer, but that’s not really a sport anyhow). My favorite sporting event is the Final Four tournament in March/April. I think the best season of the year is the Fall. I would love to be hiking and camping on some trail right now.
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2 Comments
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Read what Al Mohler has to say.
First, he says that panic is unwarranted. I think he’s right. I hope he’s right.
Later, he goes on to say this:
Christians should look at the economy as a test of our values. The Bible values honest labor and dedicated workers, and so should we. The Bible warns against dishonest business practices, and we must be watchful. False valuations are, in effect, lies. Dishonest accounting practices are just sophisticated forms of lying. Insider information is a form of theft.
The Bible honors investment and thrift, and Christians must be wary of the impulse for short-term gains and pressure for instant profit. Over the long-haul, the entire economy must prosper if the vast majority are to do well and realize a responsible gain.
Thus, the current crisis sheds light on what happens when things get out of control, when various pressures distort the proper operation of the markets, and when irrational valuations entice investors to make poor investments. Dishonesty enters the picture at many levels, and the individual investor is too often left in the dark.
When these things happen the economy is threatened by a lack of trust, and trust is the most essential commodity of all when it comes to economic transactions. Without trust, the entire system collapses.
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Here’s a step by step article from the Mises Institute on the housing “bubble”, which is really the underlying issue with all of this. I found the “Real Estate Rollercoaster” embedded in the article interesting as well.
Hugh Williams : September 26th, 2008 at 6:00 am