Silver Lining in Banking Mess?
Christian Financial World Sees Silver Lining in Banking Mess
Excerpt:
Dick Towner, director of Willow Creek Community Church's Good Sense financial ministry, hasn't sensed panic among investors. However, he detects concern among ministries — particularly those in the shadow of Wall Street — that year-end donations may sharply decline.
Yet he also sees a silver lining in the financial clouds.
"This is a time that can bring us back to the sensibility of what's important," Towner said. "We have for some time needed something that would grab our attention and say, 'Hey, this can't go on forever. We can't spend more than we're making.'"
Comment: Individuals, businesses, and ministries need to make the necessary adjustments during these times.
"This party just got started, Joe average is just realizing there is a problem. When he opens up his 401krap account and sees how much he is down in October he will sell everything including the kitchen sick. Even divine intervention will not stop the total destruction of the markets you are about to witness."
ReplyDeleteThese are not my comments. This is some guy at a stock board that I frequent. He may be correct.
So who's going to buy Wachovia stock on Tuesday?
ReplyDeleteRe: "Joe average is just realizing there is a problem. When he opens up his 401krap account and sees how much he is down in October he will sell everything including the kitchen sick".
ReplyDeleteI guess I consider myself somewhat of a "Joe Average". I have a 401K and it has tanked. But the question is "now what?". If one sells securities, one must ask "what do I do with that money".
For me, I'm in it (investments) for the long run. I am 7 years (Lord willing) away from retirement and I am hoping that these investments recover.
I am a huge advocate of fiscal conservatism. When I was a Pastor, I advised my church NOT to borrow. In 2 churches, we paid off debt and when I left they were debt free.
No longer a Pastor, but I still advocate "debt free". I think we are in for tough times. I hope I am wrong.
What to do with the money.......Great point, JP. I certainly think that some people will sell, but I really don't see the average investor (person who has a 401K and has rarely if ever bought an individual stock) as selling. One of the main reasons is because, like you said, once they sell, THEN what are they going to do? Most people I think will just do nothing (which is perhaps the most advisable option) and let the professionals do their job and handle the 401Ks. After all, that's what they do. I'm sure that some will panic and sell, but I think the majority of Americans will not touch it and will ride it out.
ReplyDeleteKeep in mind here that those who had a little bit of liquid cash, and bought for the long term, around 1935 did REALLY, REALLY well once Hitler and Hirohito put the kibosh on the New Deal for a while.
ReplyDeleteYes, a lot of people trade on emotion. Some, on the other hand, think.
For what it's worth, I'm guessing that there are a lot of emotional people at church. Sorting the offering was easier than usual last weekend. Jim, should we talk with Les about starting up another financial responsibility class this fall and winter?